Strong loonie holding back ICE canola contracts

By Ashley Robinson, Commodity News Service Canada
WINNIPEG, Jan. 3, 2018 (CNS Canada) – ICE Futures canola contracts were weaker at midday Friday, as a strengthening Canadian dollar weighed on the market.
“Canola, it could hold steady, it could even kick up a little bit. But the Canadian dollar right now is just squashing it pretty much and keeping it subdued,” said a Winnipeg-based trader.
Chicago Board of Trade soybean, oil and meal contracts are all firm, which was supportive for canola and limiting losses for the market. The trader suspects if the dollar wasn’t holding back canola, contracts would be up $2 or $3.
“There is room for the Canadian dollar I think to be a strong off and on over a period time, which will certainly not help the canola out at all,” he said.
About 4,800 canola contracts had traded as of 10:30 CST.

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