By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 29 – ICE Canada canola contracts were holding onto small gains in most months Friday morning, after chopping around both sides of unchanged in overnight activity.
Gains in CBOT soyoil and soybeans provided some spillover support for the canola market, according to participants.
Continued weakness in the Canadian dollar, which was trading below 80 US cents this morning, was another underpinning factor for canola as the declining currency makes exports more attractive to international buyers.
Concerns over dry conditions in parts of Western Canada remained supportive as well, although there is more moisture in some longer range forecasts.
Overbought price sentiment, the large South American soybean crop, and good US crop prospects all served to limit the upside potential in canola, according to participants.
About 4,000 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:50 CDT:
