ICE Canola Strengthens On Weak Canadian Dollar

The Canadian dollar was down by over a cent relative to its US counterpart at midday Wednesday, making canola more attractive to both exporters and domestic crushers. A canola broker noted that the movement in the currency alone would help crush margins improve by C$6 per metric ton.

A lack of farmer selling, as producers remain focused on finishing their spring seeding operations before the next rains come, also provided some support for canola, according to the broker.

However, the active planting pace also put some pressure on values, as the market is bracing itself for what could be a record large crop.

Losses in CBOT soybeans and soyoil also tempered the advances in canola, according to the broker.

Erratic movements in the outside financial and commodity markets were also keeping activity in the canola market on the cautious side, the broker added.

At 10:48 CDT, about 8,200 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 10:48 CDT: