ICE Canola Higher In Nearby Months, Canadian Dollar Supportive

The Canadian dollar was down by nearly two cents relative to its US counterpart at midday Thursday, making canola more attractive to both exporters and domestic crushers, according to a broker who said nearly all of the strength in canola was tied to the movement in the currency.

A firmer tone in the nearby CBOT soybean contracts was also providing some underlying support for canola.

However, declines in crude oil and soybean oil were encouraging some spillover selling in canola, according to the broker. He said farmer hedges were also starting to pick up after being mostly absent earlier in the week.

The generally favorable North American crop prospects, for both canola and soybeans, also served to temper any upside in canola and keep the deferred months pointed lower.

At 10:44 CDT, about 5,400 canola contracts had changed hands, with the July/November spread trade a feature of the activity.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:44 CDT: