By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sep. 4 (CNS Canada) – ICE Futures canola contracts were stronger at midday Tuesday, as weakness in the Canadian dollar and gains in the Chicago Board of Trade soy complex provided support.
The Canadian currency was down sharply relative to its United States counterpart, which helped crush margins improve and brought domestic processors in on the buy side, according to a broker.
Cool and wet conditions in parts of Western Canada were also supportive, as the weather caused harvest delays and may have damaged some fields.
However, expectations that Statistics Canada will confirm large old crop supplies in a stocks report due out Sep. 6 put some pressure on values.
Chart resistance was also holding to the upside as canola nears the 50-day moving average.
About 8,400 canola contracts traded as of 10:40 CDT.