By Jade Markus, Commodity News Service Canada
WINNIPEG, January 7 – ICE Canada canola contracts were mostly lower at midday Thursday, pressured by firmness in the Canadian dollar.
“The Canadian dollar is finally showing a little bit of life and it’s finally putting a little bit of pressure on canola,” said one Winnipeg-based trader.
He added that the dollar, which fell to a 12-year-low earlier in the week, has contributed to relative firmness in canola in recent weeks.
Without that weakness, canola would be C$20 or C$30 lower.
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“Other than that, not too much special going on with canola right now, there’s good steady demand.”
Farmer selling has also started back up again after stalling a bit for the holidays, the trader said, but strength in canola has encouraged some producers to hold out a bit longer.
“The canola price has pushed up high enough that it has triggered some sales, but I wouldn’t say it’s an avalanche.”
“Growers have been lucky that the Canadian dollar has been a bit weaker.”
Weakness in Chicago Board of Trade soy oil added to canola’s declines on Thursday.
Malaysian palm oil closed lower.
About 9,331 canola contracts had traded as of 10:30 CST.
Milling wheat, durum, and barley futures were all untraded and
Prices in Canadian dollars per metric tonne at 10:30 CST:
