By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 23 (CNS Canada) – ICE Canada canola contracts were bouncing around both sides of unchanged Monday morning, although the bias was turning lower in choppy activity.
Losses in Chicago Board of Trade soybeans put some early pressure on canola, as relatively favourable South American crop conditions weighed on the US market.
Bearish technical signals were also a factor, with March canola running into resistance around the C$520 per tonne level.
However, CBOT soyoil was higher to start the day, which provided some underlying support. Recent weakness in the Canadian dollar, solid end-user demand, and ideas that canola remains cheap compared to other oilseeds all underpinned the futures as well, according to participants.
About 5,500 canola contracts had traded as of 8:59 CST.
Milling wheat, durum, and barley futures were all untraded.
