November 23, 2009

Canola contracts traded on the ICE Canada platform were higher at 11:41 a.m. EST Friday (November 20), supported by bullish technical signals and the weaker Canadian dollar.

Funds were the noted buyers in canola, according to a broker who said the technical signals were looking bullish in the market. Light exporter pricing of routine business was also a supportive factor.

A weaker tone in the Canadian dollar added to the strength seen in canola, said the broker.

CBOT soy was also higher by midsession, recovering from early losses. The gains in soy accounted for some spillover buying interest in canola, said the broker.

Farmer hedges tempered the upside, according to the broker, as firm cash bids in western Canada have triggered some more farmer deliveries.

Ongoing concerns about canola sales to China and canola meal sales to the US remained in the background, also limiting the advances in canola.

At 11:41 a.m. EST, about 4,600 canola contracts had changed hands, with inter-month spreading only a small feature.