By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 26 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Monday, as gains in Chicago Board of Trade soybeans provided support.
Weather concerns out of Argentina remained a key driver in the oilseed markets to start the week, as forecasts calling for hot and dry weather over the next few weeks should cut further into the soybean production prospects in the South American country. Excessive rain in Brazil was also somewhat supportive, as the moisture delays harvest operations there.
Supportive technical signals contributed to the gains, as speculators build on long positions in both soybeans and canola, according to a trader.
Weakness in the Canadian dollar, which was down about a fifth-of-a-cent relative to its U.S. counterpart at midday, was also supportive.
However, farmers are still sitting on large old crop canola supplies and hedge selling tempered the advances. Expectations for an increase in seeded canola area this spring also weighed on values.
About 20,000 canola contracts had traded as of 10:40 CST.
