By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 4 (CNS Canada) – ICE Canada canola contracts were weaker Thursday morning, as a continued rally in the Canadian dollar and confirmation of large canola supplies weighed on values.
The currency was up by about two-thirds of a cent relative to its US counterpart in early activity, after posting sharp advances the previous day. The currency is now more than 73 US cents for the first time in nearly two months, which cuts into crush margins and also makes exports less attractive to international buyers.
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Canadian canola stocks, as of December 31, 2015, were pegged at 12.1 million tonnes by Statistics Canada in a report out this morning. That was down from the 12.6 million at the same point the previous year, but was still seen as somewhat supportive as many industry participants had anticipated a tighter number.
Advances in soyoil helped limit the losses in canola.
The March contract was below the psychological C$470 per tonne level, but some bargain hunting was coming forward to keep values off of their session lows.
About 6,500 canola contracts had traded as of 8:50 CST.
Milling wheat, durum, and barley futures were all untraded.
