By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, March 28 (CNS Canada) – ICE Canada canola contracts were stronger Monday morning, testing nearby resistance as gains in CBOT soyoil and Malaysian palm oil provided some support.
Production concerns brought on by El Nino weather patterns helped take palm oil futures to fresh two-year highs in overnight activity, which was spilling into other vegetable oil markets – including canola.
Chart-based buying contributed to the firmer tone, as canola was trading just below nearby resistance.
However, strength in the Canadian dollar relative to its US counterpart did temper the advances to some extent. Increased farmer selling, the advancing South American harvest, and concerns over declining Chinese demand were also overhanging the canola market, according to participants.
About 2,000 canola contracts had traded as of 8:53 CDT.
Milling wheat, durum, and barley futures were all untraded.
