By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 12 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Monday, as gains in Chicago Board of Trade soybeans spilled over to provide support. Recent weakness in the Canadian dollar was also supportive.
Soybean fields in Argentina received less rainfall than expected over the weekend, with forecasts calling for a return to hot and dry conditions over the next week. The weather concerns there provided the catalyst for fund buying in soybeans, which spilled into the canola market, according to a broker.
However, soybeans ran into resistance to the upside and backed off their highs amid reports that China had cancelled 450,000 tonnes of U.S. business.
A softer tone in soyoil also put some pressure on canola.
About 15,000 canola contracts had traded as of 10:56 CST.
