By Jade Markus, Commodity News Service Canada
WINNIPEG, December 8 – ICE Canada canola contracts were higher at midday Tuesday with strong crush margins and a weaker Canadian dollar.
“The crush margins are fantastic from a relative and historical point of view,” said one Winnipeg-based trader.
ICE crush margins against the January 2016 contract sat at C$89.12 on December 8.
“The crushers are laying on pretty good in terms of buying canola.”
Slight strength in Chicago Board of Trade soy oil, and weakness in the Canadian dollar also pushed canola up at midday, but the trader doesn’t think that strength will last.
“I think when this day is over I would be surprised if we were up more than a dollar, unless the beans take a big move, but they have downside potential.”
Malaysian palm oil closed lower.
The Canadian dollar was at a fresh 11-year low on Tuesday.
About 27,203 canola contracts had traded as of 10:40 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:40 CST:
