By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 18 (CNS Canada) – ICE Canada canola contracts were trading to both sides of unchanged Thursday morning, lacking any clear direction as the market saw some consolidation after yesterday’s losses.
A sharp rise in the Canadian dollar relative to its US counterpart accounted for much of Wednesday’s weakness in canola, and the currency remained firm on Thursday. The stronger currency cuts into crush margins and makes exports less attractive to international buyers.
Losses in CBOT soybeans and soyoil weighed on canola as well, according to participants.
However, oversold price sentiment and ideas that canola is starting to look more attractively priced compared to other oilseed options underpinned the futures. Gains in crude oil also provided some spillover support.
About 7,000 canola contracts had traded as of 8:58 CST.
Milling wheat, durum, and barley futures were all untraded.
