By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 25 – Canola contracts on the ICE Futures Canada platform were holding onto small gains at midday Monday, although activity was thin and choppy.
Weakness in the Canadian dollar, which was down by nearly half a cent relative to its US counterpart, accounted for most of the buying interest in canola, according to a broker. He said exporters and domestic crushers were both showing good demand, with China making some fresh purchases recently.
A lack of significant farmer selling for the time being was also supportive for canola, said traders. From a chart standpoint, canola was trading right above a number of major moving averages, which was also underpinning the futures.
On the other side, losses in CBOT soybeans and soyoil did put some pressure on canola. Softness in the outside equity and energy markets, weighed on values as well.
About 9,000 canola contracts had traded as of 10:53 CST.
Milling wheat, durum, and barley futures were all untraded.
