By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 20 (CNS Canada) – ICE Futures canola contracts were posting small losses at midday Friday, although activity was thin and choppy as traders squared positions ahead of the weekend.
While supportive chart signals and a lack of farmer selling provided some underlying support, “the Canadian dollar rally took the wind out of canola’s sails,” said a broker. The currency was up by about three-quarters of a cent relative to its United States counterpart.
An upward revision to Agriculture and Agri-Food Canada’s 2018/19 ending stocks forecast and ideas that exports for the current crop year wouldn’t live up to expectations added to the softer tone in canola.
Overnight rains in Manitoba and Alberta were also bearish for values, as the moisture will help boost the yield potential where it hit. However, much of Saskatchewan missed out on the latest moisture, and persistent dryness concerns helped underpin the futures.
About 6,000 canola contracts had traded as of 10:57 CDT.
