ICE Canada Review: Canola Lower with Strong C$

Canada’s currency was about a half cent stronger against its US counterpart, prompting one Winnipeg-based trader to say it was ‘hammering’ canola. The high dollar makes canola less attractive to exporters.

Further losses stemmed from worries about the global economic recovery, with fears demand for commodities could dwindle if the economic concerns persist.

Sharp declines by the CBOT soy complex, Malaysian palmoil, and European rapeseed added to the unfriendly tone of prices, brokers said.

Some concerns about the condition of the western Canadian canola crop helped the market come back from its lows, although it is thought the overall status of the crop is fairly decent.

The routine pricing of old export and commercial business helped to restrict the losses as well, market watchers said.

About 18,258 contracts were traded on Monday, which compares with Friday when an estimated 16,719 contracts changed hands. Spreading was a feature, accounting for 7,846 of the contracts traded.

Western barley futures were untraded and unchanged on Monday.

Settlement prices are in Canadian dollars per metric ton.