By Jade Markus, Commodity News Service Canada
WINNIPEG, May 30 – ICE Canada canola contracts were stronger on Monday, taking slow and steady strides higher with losses in the Canadian dollar.
Canola was gathering sole support from a weaker loonie at midday, as US markets were closed for Memorial Day.
The Canadian dollar lost ground with a softer crude oil market, and anticipation that the US Federal Reserve could raise interest rates this summer.
A weaker loonie is bullish for canola, as it makes the commodity more appealing to international buyers.
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But overall the market was seeing sluggish, light-volume trading on Monday.
“It’s very, very dead,” said one Winnipeg-based trader.
“Sometimes canola can be fairly active on these holidays, but we’re not seeing too much activity at all.”
Canola lagged behind US markets on Friday, which could cause follow-through buying throughout the day, the trader added.
“That might give canola some support heading into the close,” he said.
“Though it looks like nobody wants to do too much until tonight when the US markets are open.”
On the bearish side, canola could see pressure from improved crop-conditions and increased farmer selling.
Rain in Western Canada has benefitted germinating canola crops and improved topsoil moisture.
Now that crops are underway, farmers are more interested in selling crops, the trader said.
“The Prairies are looking much better than they were a month ago,” he said. “Now anytime we see canola rallying there will be some farmer selling out there, a few weeks ago nobody wanted to sell.”
Milling wheat, durum and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:45 CDT:
