By Dave Sims, Commodity News Service Canada
WINNIPEG, May 1 – Canola contracts on the ICE Futures Canada platform were stronger at 10:45 CDT Friday, as the sharply lower Canadian dollar pushed values higher.
Thin volumes exaggerated the gains, said a trader, noting many people took today off in recognition of May Day.
Support also came from advances in soybean oil.
The most-active July contract encountered resistance this morning at the C$450.00 a tonne mark.
Farmers are busy seeding right or preparing for fieldwork leaving little time to be active sellers in the market, said the trader.
“Funds are light-sellers though,” he said, “there’s some technical-based trading.”
However, weakness in US soybeans and soymeal were a bearish influence on the market.
The bias is to the downside, said the trader, noting technical selling could build on itself given the right conditions.
Huge supplies of soybeans overhung the market, said an analyst.
Around 2,200 contracts had traded as of 10:45 CDT, Friday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
