By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 14 (MarketsFarm) – The ICE Futures canola market was mostly stronger Thursday morning, as a sharp drop in the Canadian currency provided support.
The Canadian dollar was down by over a cent relative to its United States counterpart as broad strength in the U.S. Dollar Index was enough to counter any lingering support from Wednesday’s Bank of Canada interest rate hike. The weakening currency underpins crush margins and makes exports more attractive to international buyers.
A slightly firmer tone in European rapeseed provided some additional support for canola, but Malaysian palm oil and Chicago soyoil were both weaker in overnight activity.
Forecasts remain hot across most of the Canadian Prairies over the next few weeks, with only scattered thunderstorm activity.
About 4,000 canola contracts had traded as of 8:47 CDT.
Prices in Canadian dollars per metric ton at 8:47 CDT:
Canola Nov 831.10 up 1.20
Jan 838.40 up 0.70
Mar 845.30 up 0.10
May 846.60 dn 4.20
