By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 27 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Friday, hitting their highest levels in two months as continued weakness in the Canadian dollar provided support.
Fund traders adding to long positions contributed to the gains in canola, as nearby chart signals point higher, according to a broker.
However, the January contract is facing resistance at around C$520 per tonne, which tempered the upside.
The gains in the futures over the past week were also spilling into the cash market, and an increase in farmer selling was another bearish influence tempering the gains.
About 10,500 canola contracts had traded as of 10:58 CDT. November options are set to expire today, and activity in the options market was a feature.
