By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 17 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were stronger at midday Tuesday, taking some direction from the advances in the Chicago Board of Trade soy complex.
A softer tone in the Canadian dollar was also supportive, as it makes canola more attractive to export customers and domestic processors.
Canola was “looking on the cheap side,” according to a broker who said canola was lagging the soy complex to the upside. He said canola traders were showing some caution at midday, but could come in as more aggressive buyers later in the session if the US soy complex remains higher.
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Weather concerns were a supportive influence for canola as well, with recent frost damage in parts of the Prairies still being assessed.
However, forecasts calling for some much needed rain in dry parts of Alberta later in the week were somewhat bearish.
About 8,500 canola contracts had traded as of 10:50 CDT, with the July/November spread a feature of the activity.
Barley futures saw some light activity, moving lower with 25 contracts traded. Milling wheat and durum were both untraded.
