By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 4 (CNS Canada) – ICE Canada canola contracts were narrowly mixed Wednesday morning, although the bias was turning higher in the most active months as the market consolidated right around nearby support.
The most active March contract dipped below the C$500 per tonne level in overnight activity, but was trading just above that level by 8:50 CST.
Solid end user demand and gains in the Chicago Board of Trade soy complex contributed to the firmer tone in canola, according to participants.
However, the Canadian dollar was up by more than half a cent relative to its US counterpart, which put some pressure on canola as the firmer currency cuts into crush margins and makes exports less attractive to international buyers.
Relatively favourable South American crop conditions remained a bearish influence in the background as well.
About 3,200 canola contracts had traded as of 8:50 CST.
Milling wheat, durum, and barley futures were all untraded.
