By Jade Markus, Commodity News Service Canada
WINNIPEG, June 3 (CNS Canada) – ICE Canada canola contracts moved lower on Friday, as gains in the Canadian currency pressured the market.
“The Canadian dollar is a big factor here today, with the huge downfall in the US employment numbers,” said one Winnipeg-based analyst.
The loonie gained against its US counterpart on Friday as the American economy created the fewest number of jobs since 2010 in May.
That news was bearish for canola, as a stronger Canadian dollar makes the country’s commodities less appealing to international buyers.
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Pressure from Chicago Board of Trade soybeans caused slight declines in the canola market, the analyst said, but for the most part, canola has sidestepped the volatility in that market.
“With the ridiculous swings that we’re seeing in the July soybean market, all the other markets are trying to ignore it,” he said.
“It’s aligning itself a little bit with the US markets, but mostly just holding steady and rebalancing with them.”
Farmer selling and favourable crop conditions added to the bearish tone on Friday.
There has been a steady increase in producer sales as canola prices have moved to attractive levels, and seeding is mostly finished on the Prairies.
About 16,239 contracts had traded as of 10:35 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
