By Dave Sims, Commodity News Service Canada
WINNIPEG, February 11 – Canola contracts on the ICE Futures Canada platform were mostly higher at 10:45 CST Wednesday, as weakness in the Canadian dollar propelled values higher.
Canola received support from the US soy complex which was slightly stronger.
Spreads have been a feature behind the movement with funds looking to squeeze more money out of their positions, according to a trader.
“They (funds) see a weak Canadian dollar environment; therefore you go long on canola, short on beans, and you make a fortune on the currency shift,” the trader said.
Commercial buying remained steady which helped to underpin the market.
However, weakness in Malaysian palm oil and European rapeseed futures limited the gains.
The South American soybean crop appears to be record large, which was bearish for canola.
Around 12,500 contracts had traded as of 10:45 CST, Wednesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CST:
