By Jade Markus, Commodity News Service Canada
WINNIPEG, April 13 – ICE Canada canola contracts were stronger in early activity on Wednesday, gathering support from losses in the Canadian dollar, and gains in Chicago Board of Trade soy oil.
The loonie lost ground against its US counterpart in early activity, as concerns about high crude oil supplies pressured the Canadian currency.
But those losses make canola more appealing to foreign buyers.
CBOT soy oil and Malaysian palm oil were stronger Wednesday morning, which added to canola’s gains.
Traders are working a weather premium into the market, analysts say.
Some areas in Canada are too dry, while some in the US are too wet, which further propped up prices.
However, canola closed lower on Tuesday, which has moved the technical bias to the downside, and could cap gains throughout the day.
About 2,282 canola contracts had traded as of 8:20 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:20 CDT:
