By Dave Sims, Commodity News Service Canada
WINNIPEG, July 31 – ICE Canada canola contracts were mixed in volatile trading Friday morning. The most-active November contract was testing the key support level of C$500 per tonne.
Losses in the US soy complex put pressure on prices.
The Canadian dollar was higher relative to its US counterpart which made canola less desirable to domestic crushers and foreign buyers.
However, word that China is buying canola supplies lent support to the market.
A concern about a drop in production in 2015/16 due to weather issues across the Prairies was also bearish for values.
Trading is expected to stay choppy today as investors try to position themselves in advance of the Canadian long weekend. The canola market will be closed on Monday, August 3.
Generally favourable weather conditions across the Prairies this weekend are expected to aid development of the crop.
About 1,800 canola contracts had traded as of 8:45 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:45 CDT:
