By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, March 4 (CNS Canada) – ICE Canada canola contracts were stronger Friday morning, continuing to see a corrective bounce off of the contract lows hit earlier in the week.
Commercial bargain hunting was also supportive, according to participants.
Gains in Chicago soybeans and soyoil contributed to the firmer tone in canola. Some of the strength in soybeans was tied to a corruption scandal concerning Brazil’s former president that was causing the Brazilian currency to rise sharply relative to the US dollar. The strengthening real may cut into soybean exports out of Brazil. In addition there were also reports that Brazil will be raising requirements for biodiesel in its fuel supply. Such a move would likely cut into the soybeans available for export.
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On the other side, strength in the Canadian dollar did put some pressure on canola.
The longer-term technical trend also remains pointed lower, making any gains a possible selling opportunity from a chart standpoint.
About 3,600 canola contracts had traded as of 8:52 CST.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:52 CST:
