By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 2 (CNS Canada) – ICE Canada canola contracts were stronger Tuesday morning, as weakness in the Canadian dollar and a firmer tone in CBOT soyoil provided support.
The currency was down by over half a cent relative to its US counterpart in early activity, which makes exports more attractive to international buyers and also helps underpin domestic crush margins.
Chart-based buying contributed to the advances in canola, as the March contract bounced off of nearby support around C$470 per tonne.
However, losses in CBOT soybeans did put some spillover pressure on the Canadian oilseed, according to participants. Expectations that large South American soybean crops will soon be flooding the global market, despite some persistent weather concerns, also tempered the advances.
About 9,000 canola contracts had traded as of 8:48 CST.
Milling wheat, durum, and barley futures were all untraded.
