By Jade Markus, Commodity News Service Canada
WINNIPEG, July 27 – ICE Canada canola contracts were stronger at midday on Wednesday, propped up by a lower domestic currency and gains in other oilseed markets.
The commodity-linked Canadian dollar lost ground against its US counterpart on Wednesday, pressured by weaker crude oil prices.
That weakness was bullish for canola, as a lower currency supports demand by making the commodity more appealing to international buyers.
Advances in the Chicago Board of Trade soybean market further underpinned canola values. The CBOT soy market gained after bouncing back from a key support level.
Speculative short-covering was also a feature.
One Winnipeg-based analyst added that canola is in a weather-based market, and mostly favourable conditions have limited upside potential.
About 11,065 contracts had traded as of 10:37 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:37 CDT:
