By Dave Sims, Commodity News Service Canada
WINNIPEG, May 3 – Canola contracts on the ICE Futures Canada platform were stronger at 10:45 CDT on Tuesday, due to action in the Canadian currency.
The Canadian dollar was nearly a cent lower relative to its American counterpart, which made canola more desirable to out-of-country buyers.
“You’re getting strength out of canola only because the Canadian dollar’s down 90 (plus) points. It’s very poor trade, I think they’re going to wait for the end of the trade and then everyone is going to gang up and nail it at the end of the close,” said a Winnipeg-based analyst.
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Dry weather across parts of Western Canada was bullish for the market.
A lack of farmer selling was supportive as growers wait for old crop supplies to strengthen, added the analyst.
However, weakness in the vegetable oil markets, crude oil, the US soy complex and the financial markets in general limited the gains.
Wet weather in the US could cause some US farmers to switch out acres intended for corn into soybeans, traders said.
About 7,500 canola contracts had traded as of 10:45 CDT.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
