ICE Canola Down As Strong Canadian Dollar Weighs

A Winnipeg-based broker said commercial hedges and speculative selling, encouraged by early losses in CBOT soybeans and soyoil, were weighing on canola values.

News that China was deferring some US soybean purchases added to the weaker tone in the North American oilseeds, including canola, said traders.

Canola was also pressured by the firm Canadian dollar, which was up sharply relative to its US counterpart on Tuesday. While exporters and domestic crushers were making some routine purchases on a scale-down basis, the broker said the strong currency was cutting into crush margins.

Ongoing concerns about potential planting delays this spring across western Canada, due to excessive moisture, remained supportive for canola. The CBOT soy complex was also starting to show some firmness as the day progressed, leading to some choppiness in canola, according to traders.

At 10:35 CDT, about 13,500 canola contracts had changed hands, with inter-month spreading a feature of the activity.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:35 CDT: