By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 7 (CNS Canada) – ICE Canada canola contracts were stronger Friday morning, as overnight profit-taking dried up and the path of least resistance remains pointed higher.
In addition to the bullish technical signals, gains in Chicago Board of Trade soybeans also provided spillover support for canola.
Concerns over hot and dry conditions across much of Western Canada were another supportive influence, as traders continue to price a weather premium into the futures.
However, a firmer tone in the Canadian dollar, which was up by roughly half a cent relative to its US counterpart, tempered the upside.
Ideas that the recent rally in canola is starting to look overdone also pressured the market.
About 7,800 canola contracts had traded as of 8:55 CDT.
Milling wheat, durum, and barley futures were all untraded.
