By Dave Sims, Commodity News Service Canada
WINNIPEG, November 7 – Canola contracts on the ICE Futures Canada platform were stronger at 10:42 CST on Tuesday, due to action in the Canadian currency.
The Canadian dollar was roughly half a cent lower relative to its U.S. counterpart, which made canola more attractive to domestic crushers and foreign buyers.
“Crush margins are up nicely today, obviously from that drop in the loonie,” said a trader in Winnipeg.
Some traders have already started to take positions in advance of the USDA’s monthly supply and demand report. The report is due out on Thursday and there are ideas soybean yields could be lowered.
Advances in vegetable oil were supportive for prices.
However, canola is running into some technical resistance on the charts.
Dry, soybean growing regions of Brazil are receiving more rain.
About 9,000 canola contracts had traded as of 10:42 CST.
Prices in Canadian dollars per metric ton at 10:42 CST: