By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 31 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Tuesday, with weakness in the Canadian currency behind some of the strength.
Softer-than-expected domestic economic data had the Canadian currency testing fresh three-month lows on Tuesday, which helps underpin crush margins and should be making exports more attractive to international buyers.
Speculators adding to their net long positions added to the firmer tone in canola, according to a broker.
Ongoing concerns over unharvested acres in northern Alberta were also supportive, although some farmers were reportedly able to finish up over the weekend.
Farmer selling kept a lid on the upside, according to participants.
About 11,000 canola contracts had traded as of 10:56 CDT, with the narrowing November/January spread a feature as participants exit the front month before its expiry.
