By Dave Sims, Commodity News Service Canada
WINNIPEG, October 19 – Canola contracts on the ICE Futures Canada platform were higher at 10:45 CDT on Wednesday, following gains in the vegetable oil market.
Concerns over the lagging harvest in Western Canada added to the strength, as many people are uncertain how much harvesting will get done before winter.
The technical bias has turned higher.
Gains in US soybeans were supportive for canola.
Both front-month contracts broke above technical resistance.
However, the Canadian dollar was stronger relative to its US counterpart, which made canola less attractive to foreign buyers.
A few traders opted to sell once canola broke through the C$500 per tonne mark, according to an investor in Winnipeg.
The weather is expected to become favourable in the next couple of days, which could lead to more harvesting.
About 22,000 canola contracts had traded as of 10:45 CDT.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:45 CDT:
