ICE Canola Strengthens On Weak Canadian Dollar

The Canadian dollar was sharply weaker Tuesday morning, which makes canola more attractive to exporters and domestic crushers. Factoring in exchange rates, a Winnipeg broker said the gains in canola were directly linked to the weaker Canadian dollar, as prices were relatively unchanged on the day in US dollars.

Exporter demand accounted for some of the buying interest, according to the broker, with canola still looking relatively cheap compared to soybeans.

However, the ongoing uncertainty regarding future business to China continued to limit the upside in canola, according to the broker.

A weaker tone in CBOT soyoil also put some pressure on canola values.

In addition, large canola supplies in western Canada were overhanging the market. The broker noted that while farmers are reluctant sellers right now, the crop did come off in better shape than had been expected and will eventually need to move.

At 10:57 CST, about 4,900 canola contracts had changed hands, with inter-month spreading only a small factor.

Western barley futures were holding steady at midsession, with 20 contracts traded.

Prices in Canadian dollars per metric ton at 10:57 CST: