By Jade Markus, Commodity News Service Canada
WINNIPEG, March 10 – ICE Canada canola contracts were stronger at midday on Thursday, propped up by losses in the Canadian dollar.
“The dollar is getting slapped here, and that’s certainly helped creep the market up,” said one Winnipeg-based analyst.
A weaker loonie allows domestic crushers to book more business, the trader said, which is supportive.
Limited farmer selling is also keeping prices firm, as growers don’t like current prices.
“The farmer is still sitting on his hands, so we may have a lack of selling above the market.”
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Malaysian palm oil closed mixed, but mostly stronger, overnight on Thursday. Relative strength in the market has lent support to canola.
“The oilseeds, palm oil, soybean oil have been on a nice little run here,” the trader said.
“Spreads have tightened up a little bit here, but volumes are still on the disappointing side.”
But increased activity in the May/July contract was a positive feature, the trader said.
He added that he doesn’t think speculative commodity funds will add to their short positions.
“So kind of going nowhere fast.”
About 9,547 contracts had traded as of 10:38 CST.
Milling wheat, durum and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:38 CST:
