By Dave Sims, Commodity News Service Canada
WINNIPEG, April 28 – Canola contracts on the ICE Futures Canada platform were higher in rangebound trading at 10:40 CDT Tuesday, pulled upward by gains in US soybeans and soymeal.
“We’re just kind of followers. The Canadian dollar is very strong but it’s not having a huge impact as traders watch the beans and meal go higher,” said a trader.
Canola seems to have found a level of support at its current price, according to a report.
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A lack of speculator and farmer selling underpinned the market.
However, as previously noted the Canadian dollar was stronger compared to its US counterpart, by roughly a third of a cent, which made canola less attractive on the international market.
The bias right now is to the downside and technical selling could build on itself given the right circumstances, said an analyst.
Weakness in Malaysian palm oil and huge world supplies of vegetable oil limited the gains.
Around 7,000 contracts had traded as of 10:40 CDT, Tuesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
