By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 18 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Thursday, as gains in soybeans and a weaker tone in the Canadian dollar provided support.
Concerns over dryness across much of Western Canada added to the firmer tone, according to a trader, as warmer temperatures highlight the lack of snow cover in many areas. While the warm weather could be encouraging some farmer deliveries, the trader added that most producers are still content to wait for higher prices.
A generally bearish technical outlook tempered the upside, with fund traders holding a net short position of about 20,000 contracts, according to participants.
Losses in Chicago Board of Trade soyoil and declining crush margins also put some pressure on values.
About 7,000 canola contracts had traded as of 10:58 CST.
