By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 6 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were higher at midday Wednesday, recovering from earlier losses as a turn higher in Chicago soyoil provided some spillover support.
Canola had started the day on the defensive, but the most active contracts were all above unchanged by midsession.
In addition to the spillover buying interest from the advances in the CBOT soy complex, solid end user demand was also providing underlying support for canola, according to participants. Chart-based buying was another feature, as canola tested nearby resistance.
However, the Canadian dollar was also firmer at midday, which did temper the upside potential to some extent. Steady farmer selling, the advancing South American soybean harvest, and ideas that US soybean acres may end up above earlier expectations also put some pressure on values.
About 8,000 canola contracts had traded as of 10:50 CDT.
Milling wheat, durum, and barley futures were all untraded.
