ICE Canola Down On Strong C$

Canola futures had initially moved higher in overnight trade in what was described as a "Turnaround Tuesday" recovery from Monday’s losses. However, canola prices turned lower in reaction to the sharp strength in the Canadian dollar. The currency was stronger following the latest interest rate announcement from the Bank of Canada. A strong Canadian dollar cuts into domestic crush margins and makes canola less attractive to export customers.

Expectations for large canola acres in western Canada this spring, aided by generally favorable weather, also weighed on canola prices.

Calls for a higher start in the CBOT soy complex, and gains in other commodity markets, including crude oil and Malaysian palm oil, were providing some underlying support for canola.

A lack of farmer selling, as producers turn their attention to spring fieldwork, was also expected to help limit the declines.

About 750 canola contracts had traded as of 8:43 CDT.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:43 CDT: