By Phil Franz-Warkentin, Commodity News Service Canada
January 12, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were higher at midday Monday, as weakness in the Canadian dollar provided some relative strength.
The currency was trading below 84 US cents, at its weakest levels since 2009. The softer Canadian dollar compensated for the declines in the CBOT soy complex, with canola holding relatively even with the softening soybean futures when the currency was factored in, said a trader.
Solid end user demand, from both exporters and domestic processors, remained a supportive feature in canola, according to participants.
Read Also
North American grain/oilseed review: Canola ends down, but off session lows
Glacier FarmMedia — ICE Futures canola market was weaker on Wednesday but finished well off its session lows after uncovering…
On the other side, farmer selling was thought to be picking up slightly as prices rise. However, a broker noted that producers were starting to get more bullish on the market, which was limiting some sales.
The USDA releases its latest supply/demand projections at 11:00 CST. While the report is unlikely to drastically alter the fundamental outlook in the grains and oilseeds, a canola trader said large price swings in the immediate aftermath were still possible.
About 5,000 canola contracts had traded as of 10:32 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:32 CST:
