By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 12 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were down at midday Tuesday, as gains in the Canadian dollar weighed on values and traders adjusted positions ahead of the United States Department of Agriculture (USDA) monthly supply/demand report.
The currency was up half a cent relative to its US counterpart, trading back above 78 US cents. The firmer currency cuts into crush margins and makes exports less attractive to international buyers.
Losses in Malaysian palm oil and Chicago Board of Trade (CBOT) soyoil futures contributed to the softer tone in canola, according to traders.
However, a lack of aggressive selling pressure tempered declines. Scale-down exporter and domestic crusher demand also provided some support.
The USDA is set to release its monthly supply/demand report at 11:00 CDT, and any surprises in the data could sway the market over the final hours of the trading session.
About 10,700 canola contracts had traded as of 10:38 CDT.
Milling wheat, durum, and barley futures were all untraded.
