By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 6 (CNS Canada) – ICE Futures Canada canola contracts were stronger Tuesday morning, as continued weakness in the Canadian dollar provided support.
The global equity markets were showing some volatility Tuesday morning after Monday’s broad selloff, with the Canadian currency dropping below 80 U.S. cents. The softer currency supports crush margins and should be making exports more attractive to international buyers.
Gains in Chicago Board of Trade soybeans and persistent weather uncertainty in parts of South America also remained supportive.
However, the forecasts are showing some improvement in Argentina, while Brazilian farmers are moving forward with harvest operations.
Positioning ahead of Thursday’s U.S. Department of Agriculture monthly supply/demand report was another feature.
About 4,500 canola contracts had traded as of 9:02 CST.
