By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 18 (CNS Canada) – ICE Futures canola contracts were stronger at midday Tuesday, with weakness in the Canadian dollar providing support.
“We came down pretty hard and were due for a bounce,” said a canola trader accounting for the strength in the market.
Gains in Chicago Board of Trade soybeans and soyoil were also supportive, while farmer selling was thought to be slowing down ahead of the holidays.
While the weaker Canadian dollar was supportive for crush margins, the declines in the currency were tied to losses in crude oil and the trader cautioned that the bearishness in the energy markets could spill into the oilseeds.
Intermonth spreading was a feature of the activity, as participants continued to exit the nearby January contract and roll their positions into March.
About 21,000 canola contracts traded as of 10:54 CST.
