By Jade Markus, Commodity News Service Canada
WINNIPEG, January 4 – ICE Canada canola contracts were stronger at midday on Wednesday, bouncing with spillover strength from the US soy complex.
“It’s not unexpected, we were getting a little oversold,” said one Winnipeg-based trader.
Heightened concerns about South American production caused a short-covering bounce in Chicago Board of Trade soybeans, soymeal, and soyoil, which is supportive for canola.
Argentina has seen heavy rains, and expects more, which could cause flooding. Additionally, other areas in the country remain too dry, the trader said.
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“It doesn’t look massive, but it’s certainly got the market a little edgy this morning.”
However, strength in the Canadian dollar is limiting the market’s upside.
“Canola’s still relatively cheap. It’s got room to bounce a little bit, it would if the Canadian dollar would settle down, but it’s staying pretty strong right now,” the trader said.
The loonie had advanced more than one per cent against its US counterpart by midday on Wednesday.
About 8,805 contracts had traded as of 10:51 CST.
Milling wheat, durum and barley futures were all untraded and unchanged.
