By Dave Sims, Commodity News Service Canada
WINNIPEG, February 28 – Canola contracts on the ICE Futures Canada platform were sharply higher at 10:40 CST on Tuesday, tracking massive gains in Chicago Board of Trade soyoil.
Advances in CBOT soybeans and Malaysian palm oil futures underpinned the market.
Losses in the Canadian dollar, relative to its US counterpart, were supportive for canola as it made the commodity more appealing to international buyers.
Commercial demand for canola remains steady.
However, the harvest in South America is proceeding rapidly which is putting more soybeans onto the market.
Crush margins are still under pressure.
Canola continues to lag US markets, according to a trader in Winnipeg.
“Canola is only up by less than half of what the US markets are up,” he said.
About 26,000 canola contracts had traded as of 10:40 CST.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:40 CST:
