By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 26 – Canola contracts on the ICE Futures Canada platform were mostly lower at midday Tuesday, as strength in the Canadian dollar put some pressure on the market.
The currency was up by a full cent relative to its US counterpart, which was cutting into crush margins and making exports less attractive to international buyers.
Losses in CBOT soybeans were also contributing to some spillover selling in the Canadian market, according to participants.
However, the losses in canola did not fully account for the rising Canadian dollar, with the recent volatility in the loonie causing many investors to start discounting the day-to-day swings in the currency, according to a broker.
Advances in CBOT soyoil helped limit the losses in canola as well.
The deferred months lagged the nearby contracts to the downside, with adjustments to the old/new crop spreads behind some of the activity.
About 6,000 canola contracts had traded as of 10:46 CST.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric tonne at 10:46 CST:
