By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 22 (CNS Canada) – ICE Futures Canada canola contracts were weaker Monday morning, retreating from overnight gains as the market ran into upside resistance and speculators returned to the sell side.
A firmer tone in the Canadian dollar and continued weakness in outside vegetable oil markets weighed on canola to start the week, according to participants.
Ideas that canola is looking expensive compared to other oilseeds, as crush margins have deteriorated over the past month, contributed to the softer tone.
However, gains in soybeans at the Chicago Board of Trade provided some spillover support. Solid end-user demand and a lack of significant farmer selling pressure also helped underpin the futures.
About 3,800 canola contracts had traded as of 9:00 CST.
