By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 30 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Tuesday, hitting their best levels in three weeks as speculators continued to cover short positions.
Ongoing weather concerns in Argentina and the resulting strength in Chicago Board of Trade soybeans accounted for some of the spillover buying interest in canola. A rally in Kansas City winter wheat was also helping pull the other grains and oilseeds higher on Tuesday.
However, canola remains stuck in a sideways trading pattern overall, with resistance holding to the upside. Recent strength in the Canadian dollar, ample old crop supplies, and expectations for record seeded area this spring all tempered the advances.
About 14,500 canola contracts had traded as of 10:55 CST.
