By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 5 (MarketsFarm) – ICE Futures canola contracts were lower at midday Wednesday, due to the growing strength in the Canadian dollar, said a Winnipeg-based trader.
The Canadian dollar was higher at 75.54 U.S. cents, compared to Tuesday’s close of 74.78.
“It’s kind of a currency play here today, where the U.S. dollar is down and the Canadian dollar is up,” he stated.
“The [Canadian] dollar seems to be our nemesis today.” The trader added, noting that it’s making canola exports more expensive. Conversely, the lower greenback is making U.S. exports more appealing.
Also, he said the most of the Prairies are in need of rain.
“We are seeing the heat backing up some of the crops,” the trader said.
Approximately 9,100 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Canola Nov 488.10 dn 2.70
Jan 495.00 dn 2.30
Mar 498.40 dn 2.10
May 501.00 dn 2.30
Futures Prices as of August 5, 2020
Prices are in Canadian dollars per metric ton