By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 28 (CNS Canada) – ICE Futures canola contracts were posting solid gains Wednesday morning, seeing some follow-through buying interest after Tuesday’s recovery off of nearby lows as speculators covered short positions.
Sharp gains in Chicago Board of Trade soybeans and soyoil provided spillover support for canola, with solid export demand behind some of the strength there.
Weakness in the Canadian dollar, which dipped below 75 U.S. cents, was also supportive for canola as the falling currency boosts crush margins and makes exports more attractive to international buyers.
Traders were also showing some caution ahead of the G20 summit in Argentina later in the week, with trade relations between the United States and China being followed closely.
About 7,600 canola contracts had traded as of 8:58 CST.
