ICE Canola Strengthens On Weak Canadian Dollar

The Canadian dollar was down by more than a cent relative to the US currency on Thursday, making canola more attractive to both exporters and domestic crushers, said a trader. He thought there was likely some export business in the market, as there was good buying in canola at the start of the North American trading day.

The CBOT soy complex was lower, which put some pressure on canola. Factoring the weaker Canadian dollar, canola values were actually holding steady relative to soybeans, said the trader.

Active harvest progress across western Canada also weighed on canola prices, with producers continuing to make steady deliveries, according to the trader.

Large movements in the outside financial and equity markets could potentially come forward to weigh on the agricultural markets, said the trader. He thought both canola and the CBOT grains and oilseeds were holding up relatively firm given the sharp declines in the outside markets. The trader was uncertain if the firmer tone would hold in canola and he thought there could be some choppiness before the close.

At 10:52 CDT, about 6,000 canola contracts had changed hands.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:52 CDT: