By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 23 (CNS Canada) – ICE Futures Canada canola contracts were stronger Tuesday morning, as a rally in Chicago Board of Trade soyoil provided spillover support.
Soyoil futures dropped to their lowest levels in six months yesterday, but uncovered some buying interest at the lows and were bouncing higher Tuesday morning. The Canadian dollar was also weaker to start the day, contributing to the gains in crush margins.
Solid end user demand, a lack of significant farmer selling, and improving technical signals contributed to the early gains in canola, according to participants.
Reports that Canada has reached an agreement and will sign on to a revised version of the Trans-Pacific Partnership (TPP) were also supportive.
About 3,600 canola contracts had traded as of 8:59 CST.
