By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 26 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were bouncing around on Tuesday, moving up and down in range-bound dealings as the market reacted to outside forces.
Gains in CBOT soybeans provided underlying support, with fund buying a feature on both sides of the border, according to participants.
The need to keep some weather premiums in the market ahead of the growing season remained somewhat supportive as well, with parts of Western Canada still on the dry side.
However, a firmer tone in the Canadian dollar relative to its US counterpart limited the upside potential in canola, according to traders. Steady farmer selling was overhanging the market as well.
The most active July contract traded above the psychological C$500 per tonne mark earlier in the day, but ran into resistance at the highs and was trading right below that point at midsession.
About 16,000 canola contracts had traded as of 10:49 CDT.
Milling wheat, durum, and barley futures were all untraded.
