By Dave Sims, Commodity News Service Canada
WINNIPEG, August 28 – ICE Canada canola contracts were higher Friday morning, taking strength from gains in the US soy complex and currency issues.
The Canadian dollar was weaker relative to its US counterpart which made canola more desirable to domestic crushers and foreign buyers.
Malaysian palm oil, European rapeseed futures were all higher this morning which contributed to the gains.
There are ideas the size of the US soy crop could be reduced which was supportive for canola.
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Weather concerns across parts of the Prairies were also bullish for values.
However, the rally appears to have settled down in most financial markets as well as crude oil which could allow for some selling pressure to return.
Traders will likely try to position themselves ahead of the weekend which could make for a volatile trading day, according to a report.
The technical bias is pointed to the downside, an analyst said.
About 4,500 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CDT:
Price Change
Canola Nov 474.60 up 1.80
Jan 479.30 up 1.90
Mar 482.60 up 1.00
Milling Wheat Oct 226.00 unch
Dec 226.00 unch
Durum Oct 335.00 unch
Dec 335.00 unch
Barley Oct 191.90 unch
Dec 191.90 unch
