By Phil Franz-Warkentin, Commodity News Service Canada
February 19, 2015
Winnipeg – ICE Canada canola contracts were stronger Thursday morning, taking back some of Wednesday’s declines as a weaker tone in the Canadian dollar provided support.
The Canadian currency was trading back below 80 US cents on Thursday, which makes exports more attractive and is also supportive for domestic crush margins.
Advances in CBOT soybeans and European rapeseed futures helped underpin the canola market as well, according to participants.
However, CBOT soyoil was down in early activity, which tempered the upside potential in canola.
Increased farmer selling, brought on by the recent strength of the market, also served to keep a lid on the advances, according to participants.
There were also some ideas that canola was looking overbought from a chart standpoint, as the futures ran into resistance to the upside.
About 6,000 canola contracts had traded as of 8:51 CST.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:51 CST:
