By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 29 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Wednesday, as weakness in the Canadian dollar provided support.
The Canadian currency fell below 78 U.S. cents, to trade at its weakest level in a month. The softer currency makes exports more attractive to international buyers and also helps crush margins improve.
Solid end user demand and supportive technical signals contributed to the gains, as the market continued to recover off of nearby lows.
However, a softer tone in Chicago Board of Trade soybeans and soyoil tempered the upside in canola.
Statistics Canada releases its final production estimates of the year on December 6, and positioning ahead of that report is expected to be a feature over the next few days. Average trade estimates are coming in at around 20 million tonnes.
About 31,000 canola contracts had traded as of 11:00 CST.
