By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 19 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Friday, as gains in Chicago Board of Trade soybeans and weakness in the Canadian dollar provided support.
A lack of significant farmer selling, mounting moisture concerns across much of Western Canada, and steady end user demand contributed to the firmer tone, according to participants.
However, 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. The nearby crush margin narrowed in to C$63 above the March contract on Thursday, which is about half the level seen at the same point a year ago.
About 9,000 canola contracts had traded as of 11:01 CST.
