By Dave Sims, Commodity News Service Canada
WINNIPEG, August 7 (CNS) – Canola contracts on the ICE Futures
platform were sharply higher at midday Tuesday, taking strength from
gains in Chicago Board of Trade soyoil.
Advances in CBOT soybeans and weakness in the Canadian dollar
were also supportive.
Speculative buying was a feature of the morning’s activity,
according to a trader in Winnipeg.
“Canola is already extremely expensive so somebody was trying
to give it a bump,” he said.
A heat wave is expected to roll across the Prairies this week,
which lent support to values.
However, there are ideas the market is overbought, which weighed
on values.
The front-month November contract encountered technical
resistance at the C$500 per tonne mark.
About 6,000 canola contracts had traded as of 10:40 CDT.
Prices in Canadian dollars per metric ton at 10:40 CDT:
