By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 3 (CNS Canada) – ICE Futures canola contracts were bouncing around both sides of unchanged Thursday morning, with the bias turning lower as the market ran into chart resistance.
The most active March contract briefly touched the psychological C$490 per tonne mark, before selling came forward to weigh on values.
A firmer tone in the Canadian dollar and a lack of significant end-user demand contributed to the early weakness in canola, according to participants.
However, gains in the Chicago Board of Trade soy complex provided some spillover support for canola, with concerns over hot and dry weather in parts of Brazil behind some of the strength in soybeans.
About 4,500 canola contracts had traded as of 9:04 CST.
