By Jade Markus, Commodity News Service Canada
WINNIPEG, March 14 – ICE Canada canola contracts were stronger in light-volume trading in early activity Monday morning.
A weaker Canadian dollar was the main source of support on Monday, as crude oil futures weighed on the loonie—making canola more appealing to foreign buyers.
Canola’s technical bias is to the upside, market watchers say, and strong commercial buying was also a feature.
Demand for vegetable oil from India was another source of support, especially as traders had been concerned about demand from China.
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Hail and rain in India’s farm belt has put a host of the country’s crops at risk, including canola. Farmers are still assessing the extent of the damage.
Malaysian palm oil closed stronger overnight, which also propped up canola prices.
But spill over pressure from Chicago Board of Trade (CBOT) soy oil limited gains in early-activity on Monday, as South America’s soy crop starts to move into the market.
About 2,107 canola contracts had traded as of 8:40 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
