By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 13 – Canola contracts on the ICE Futures Canada platform were stronger at midday Wednesday, as gains in CBOT soyoil spilled over to provide some support.
Follow-through buying interest from Tuesday’s rally contributed to the gains in canola, with the nearby technical signals shifting higher, according to analysts.
The Canadian dollar retreated from earlier gains relative to its US counterpart to trade just above the 70 US cent mark. The ongoing weakness in the currency remained supportive for canola, with exporters and domestic crushers showing solid demand.
However, increased farmer selling on the other side did temper the upside potential, according to traders who said producer sales were picking up now that it was a new calendar year.
Improving South American crop prospects were also said to be overhanging the oilseeds in general.
About 8,000 canola contracts had traded as of 10:45 CST.
Milling wheat, durum, and barley futures were all untraded.
