By Phil Franz-Warkentin, Commodity News Service Canada
March 19, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at midday Thursday, recovering from earlier losses.
The Canadian dollar was down by roughly a cent relative to its US counterpart, which contributed to the firmer tone in canola. However, the currency has seen some large swings over the past two days, and was actually up slightly compared to where it was at the same time on Wednesday.
Chart-based buying and solid commercial demand both helped underpin the lightly traded canola market, according to participants. However, a trader noted that crush margins have deteriorated over the past week, which could be making canola look overpriced to some end users.
The large South American soybean crop also remained a bearish influence in the background, according to participants.
The CBOT soy complex was mixed at midsession, with losses in soybeans but small gains in soyoil.
About 7,800 canola contracts had traded as of 10:54 CDT. Milling wheat, durum and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:54 CDT:
