By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 27 (CNS Canada) – ICE Futures Canada canola contracts were stronger Friday morning, finding ongoing support from the declining Canadian dollar.
At 77.4 U.S. cents, the currency was down another third of a cent relative to its U.S. counterpart on Friday and has lost 2.5 U.S. cents over the past two weeks. The softer currency makes exports more attractive to international buyers and also boosts domestic crush margins.
Chart-based speculative buying contributed to the gains, as the nearby technical signals remain pointed higher.
Gains in Chicago Board of Trade soybeans were also supportive, although soyoil futures were slightly lower in early activity. The advances were also thought to be bringing in some additional hedge pressure to the canola market.
About 5,000 canola contracts had traded as of 8:51 CDT.
