By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 22 (CNS Canada) – ICE Futures Canada canola contracts were holding onto small gains at midday Wednesday, with a weaker tone in the Canadian dollar providing underlying support.
The currency dropped below 76 US cents as domestic retail sales data disappointed and crude oil softened. The weaker currency makes exports more attractive to international buyers pricing in US dollars.
Concerns over tightening supplies provided further support for canola, amid ideas that some demand will need to be rationed going forward, according to participants.
However, the US soy complex was turning mixed at midday, and the general expectations for a large South American soybean crop limited the gains in canola.
Intermonth spreading was a feature of the trade, accounting for much of the activity as participants continue to exit the front month.
About 11,500 canola contracts had traded as of 10:42 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
