By Dave Sims, Commodity News Service Canada
WINNIPEG, May 25 – Canola contracts on the ICE Futures Canada platform were higher at 10:40 CDT on Wednesday, taking strength from gains in the US soy complex.
“Soymeal is screaming higher which is supporting the crush margins, even though the Canadian dollar is higher,” said a Winnipeg-based trader.
Gains in Malaysian palm oil and crude oil added to the bullish tone.
Crushers are doing some buying which was supportive, according to the trader.
Inclement weather in South American soybean fields added to the upside, according to reports.
However, the Canadian currency was higher relative to its US counterpart which made canola less attractive to out-of-country buyers.
Technical selling could be a feature today, an analyst said. If that happens the selling could build on itself.
About 6,900 canola contracts had traded as of 10:40 CDT.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
