By Jade Markus, Commodity News Service Canada
WINNIPEG, May 9 – ICE Canada canola contracts were mixed, but mostly higher, at midday on Monday, feeling some pressure from losses in Chicago Board of Trade soybeans, but keeping a more moderate tone.
“Very swingy action in the soy markets still,” said one Winnipeg-based trader.
That action is causing some pressure on canola, but the market is trying to stay in the middle, the trader added.
“It won’t go up as much as the soy markets, and it won’t go down as much as they do.”
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CBOT soy oil was weaker on Monday, but firmness in previous sessions limited helped canola see some independent strength, , the trader said.
A weaker Canadian dollar further supported canola prices at midday on Monday, as the loonie lost ground against its US counterpart by tracking losses in crude oil.
“Canola’s got good support even though it has jumped up a fair bit in the past,” the trader said.
In the background of the canola market, investors are focusing on Canadian weather.
“It’s been very dry in parts of the Prairies, we’ve been getting some rain, but some of the rain forecasts have been trimmed down,” the trader said.
He added that the weather premium could become a bigger factor in coming months.
About 12,121 contracts had traded as of 10:48 CST.
Milling wheat, durum and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:48 CST:
