By Dave Sims, Commodity News Service Canada
WINNIPEG, January 18 – Canola contracts on the ICE Futures Canada platform were higher at 10:45 CST Monday, taking strength from gains in European rapeseed futures and steady commercial buying.
US markets were closed Monday due to Martin Luther King Jr. Day.
“It’s a directionless market that really isn’t going to go anywhere,” one trader said. He noted values seemed content to mix around within a 20 cent range.
On Wednesday the Bank of Canada is scheduled to make an announcement about a possible change to the interest rate which will likely prompt traders to adjust their positions.
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However, no matter what the bank decides, the trader doesn’t think it will drastically alter the situation.
“I don’t really see how cutting the interest rate a quarter of a percent is going to make a difference to anything,” he said.
On the other side of the coin, advances in the Canadian dollar limited the gains, as the higher loonie made canola less attractive to outside buyers.
Improvements in the South American soybean crop also weighed on the market.
Around 6,300 contracts had traded as of 10:40 CST,
Monday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CST:
