ICE Canada Review: Canola Ends Higher On Crusher Buying

The Canadian dollar was down by nearly a cent relative to its US counterpart on Wednesday. The weaker currency makes canola more attractive to export customers and domestic processors, according to a broker. He said crushers were the featured buyers on the day as they looked to take advantage of the improving crush margins. Exporters were also on the buy side pricing old business, although traders couldn’t confirm any fresh sales.

A lack of farmer selling also helped underpin canola, as producers continue to focus their attention on planting this year’s crop rather than marketing, said traders.

Commodity funds were the noted sellers, tempering the upside, according to a broker. The general economic uncertainty in the outside financial markets also kept a cautious tone in canola.

About 16,673 contracts traded on Wednesday, up from Tuesday when an estimated 6,746 contracts traded. Spreading was a feature in canola, accounting for the bulk of the trading volumes as participants started to roll out of the nearby July contract.

Western barley futures were untraded an unchanged on Wednesday, lacking any clear direction.

Prices are in Canadian dollars per metric ton.

Settlements