By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, March 13 (CNS Canada) – ICE Futures Canada canola contracts were up sharply at midday Tuesday, as weakness in the Canadian dollar provided support.
The currency was down by roughly half a cent relative to its U.S. counterpart at midday, which boosts crush margins and makes exports more attractive to international buyers. Gains in the Chicago Board of Trade soy complex were also supportive, according to a broker.
“The (Canadian) dollar is in freefall mode, and will likely continue to support canola,” said a broker.
However, large old crop canola supplies kept a lid on the market. Forecasts calling for rain in parts of Argentina were also a bit bearish for the oilseeds in general, according to the broker.
About 12,200 canola contracts had traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Price Change
Canola May 519.20 up 6.80
Jul 525.00 up 7.10
Nov 514.60 up 7.50
Jan 518.90 up 8.00
