By Jade Markus, Commodity News Service Canada
WINNIPEG, June 13 – ICE Canada canola contracts were stronger in early activity on Monday, tracking advances in Chicago Board of Trade soybeans, and further underpinned by losses in the Canadian dollar.
The loonie lost ground against its US counterpart on Monday, pressured by declines in crude oil.
A softer Canadian dollar is bullish for canola as it makes the commodity more appealing to international buyers.
Chicago Board of Trade soybeans further propped up the canola market.
Soybeans moved higher with estimates for tighter-than-expected stocks projected by the United States Department of Agriculture.
Strong commercial demand for soybeans and canola underpinned both markets.
However, analysts say canola prices may have peaked short-term, and the technical bias is to the downside, which could cause prices to decline throughout the day.
Overnight losses in Malaysian palm oil limited gains in canola on Monday.
About 3,162 canola contracts had traded as of 8:40 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
