By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 13 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Tuesday, as a rally in Chicago Board of trade soymeal provided support.
Fund short-covering was a feature in canola, as traders were busy adjusting positions and exiting the nearby March contract before the end of the month.
Declining production prospects out of Argentina were especially supportive for soymeal, as the country is a major producer of the soybean byproduct. However, soyoil futures were lower on the day, which tempered the upside potential in canola as the Canadian oilseed is more heavily weighted towards vegetable oil production.
Scale-up farmer selling was also coming forward to limit the advances in canola, according to a trader.
The Canadian dollar was chopping around both sides of unchanged on Tuesday, providing little direction.
About 19,000 canola contracts had traded as of 10:57 CST.
