By Phil Franz-Warkentin, Commodity News Service Canada
February 25, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were mostly lower at midday Wednesday, with the biggest losses in the front months as intermonth spreading was feature.
A stronger tone in the Canadian dollar, which has gained roughly a cent relative to its US counterpart over the past week, accounted for some of the selling pressure in canola, according to a broker. The stronger currency makes export less attractive and also cuts into crush margins for domestic processors.
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Light profit-taking following Tuesday’s bounce contributed to the weakness in canola, although a broker noted that fund traders were largely on the sidelines.
He added that the overall technical trend remains pointed higher for the time being, which was supportive from a chart standpoint.
Gains in CBOT soyoil help temper the declines in canola as well, according to participants.
About 14,000 canola contracts had traded as of 10:48 CST. The March/May spread was a feature, briefly moving back to a carry situation as participants continue to exit the front month.
Milling wheat, durum and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:48 CST:
