By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 7 – ICE Canada canola contracts were mostly lower Monday morning, as large supplies countered the influence of the weaker Canadian dollar.
Traders were still contemplating Friday’s surprising Statistics Canada production report, which pegged the country’s canola crop at 17.2 million tonnes. That was well above trade guesses and would mark the second largest crop ever.
Losses in CBOT soybeans and soyoil contributed to the early declines in canola, according to participants.
However, the Canadian currency was trading at its weakest levels in eleven years Monday morning, which helps boost domestic crush margins and makes exports more attractive to international buyers.
Ideas that solid end user demand will help work through the larger stocks also helped underpin the futures.
About 6,000 canola contracts had traded as of 8:57 CST.
Milling wheat, durum, and barley futures were all untraded.
