ICE Canola Down, Strong C$ Continues To Weigh

After climbing nearly a cent relative to its US counterpart on Monday, the Canadian dollar remained strong on Tuesday. The strong currency cuts into domestic crush margins and makes Canadian canola less attractive to export customers as well, said traders.

Large global oilseed supplies and the advancing South American harvest also continue to overhang the canola market. Overnight losses in Malaysian palm oil futures were also seen as slightly bearish for canola.

However, calls for a relatively stable start to the North American session in the CBOT soy complex could provide some underlying support for canola, limiting the declines.

A trader said canola was relatively cheap compared to soybeans and could stand to see some independent strength.

Technical support levels were also holding Tuesday morning, according to the trader.

About 540 canola contracts had traded as of 8:45 CST.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:45 CST: