By Jade Markus, Commodity News Service Canada
WINNIPEG, July 20 – ICE Canada canola contracts were stronger in early activity on Wednesday, propped up by weakness in the Canadian dollar and gains in Chicago Board of Trade soybeans.
The Canadian dollar lost ground against its US counterpart Wednesday morning, which is bullish for canola as it makes the commodity more appealing to international buyers.
CBOT soybeans were seeing some recovery after sharp declines on Tuesday, which brought spill-over support to canola.
Analysts say commercial demand for canola is strong, a trend which is likely to continue throughout the year, which underpinned the market.
Malaysian palm oil closed stronger overnight, adding to canola’s advances.
However, market watchers say canola’s technical bias is to the downside, which could pressure prices throughout the day.
About 4,072 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:50 CDT:
