By Dwayne Klassen, Commodity News Service Canada
Winnipeg – January 02/13 – CNS – Canola contracts on the ICE
Futures Canada platform were seen opening on a firmer footing
when official trade activity resumes Wednesday morning after the
New Year’s break. Higher calls for CBOT soybean and soyoil
futures were seen lifting canola on the open, market watchers
said.
Some investor demand in the market could come from the US
Government’s ability to avoid its fiscal cliff situation, at
least for the moment.
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export commitments were also providing some minor support to
canola.
Chart signals for canola also continue to point upwards,
which should help to encourage some price strength in the
commodity, traders said.
Strength in Malaysian palm oil futures overnight were also
seen helping to give canola values a boost on its opening.
The upside in canola will be a challenge given that weather
conditions for the soybean crops in South America have remained
favourable. The upward push in the value of the Canadian dollar
early Wednesday was also expected to trim some of the upward
potential in canola, brokers said.
Prices are in Canadian dollars per metric ton and reflect
Monday’s settlement.
