By Phil Franz-Warkentin, Commodity News Service Canada
January 22, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were up at midday Thursday, as continued weakness in the Canadian dollar provided some support.
The currency has posted large losses compared to its US counterpart over the past month, losing nearly two cents alone on Wednesday. The softer currency makes exports more attractive for end users pricing in US dollars and is also beneficial to crush margins.
Speculators adding to their large long positions accounted for much of the buying interest, with the nearby chart signals also pointing higher, said a broker.
However, without the influence of the currency, canola was losing ground on a US dollar basis. Losses in CBOT soyoil and soybeans weighed on values, said a trader. Scale-up farmer selling was also coming forward to put some pressure on the market.
About 13,500 canola contracts had traded as of 10:37 CST.
Milling wheat, durum and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:37 CST:
