By Dave Sims, Commodity News Service Canada
WINNIPEG, August 10 – ICE Canada canola contracts were higher Monday morning, taking strength from advances in the US soy complex.
The Canadian dollar was lower relative to its US counterpart which made canola more attractive to domestic crushers and foreign buyers.
European rapeseed futures were also higher which added to the gains.
Follow-through buying was a feature following Friday’s gains, an analyst said.
Traders were also positioning themselves ahead of the USDA World Agricultural Supply and Demand estimates which are due to be released on Wednesday, August 12. Already, there is speculation that report will show lower US soybean acreage.
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Participants were reluctant to push the market too hard, one way or the other, ahead of the release of the USDA report, said a trader.
However, growing conditions for canola continue to improve across Western Canada, putting pressure on prices.
Losses in Malaysian palm oil limited the gains.
From a chart perspective, the most-active November contract may be running into overhead resistance at the C$510 dollar mark.
About 1,300 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CDT:
