By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Jan. 10 – Canola contracts on the ICE Futures Canada platform were firmer at 10:21 CST Friday, lifted by short covering ahead of today’s USDA crop report, which will be released at 11:00 CST. Soybeans in Chicago were up sharply ahead of the report, which further underpinned canola.
The sharp downswing in the value of the Canadian dollar also encouraged some supportive end user buying, analysts said. The loonie dipped well below the 92 cents US mark Friday morning.
Strong crush margins were also bullish, as was oversold price sentiment and ideas that canola is undervalued compared to other oilseeds.
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However, a pickup in farmer hedging in the futures market helped to limit the advances, as did spillover pressure from the weakness in Chicago soyoil values.
The technical bias in canola remains pointed lower, which means today’s advances will be seen as a good selling opportunity, brokers noted.
As of 10:21 CST Friday, about 18,097 contracts had traded.
Milling wheat, barley and durum were untraded, following slight revisions to wheat prices after the close on Thursday.
Prices in Canadian dollars per metric ton at 10:21 CST:
