By Phil Franz-Warkentin, Commodity News Service Canada
April 16, 2015
Winnipeg – ICE Canada canola contracts were weaker Thursday morning, as recent strength in the Canadian dollar weighed on crush margins.
The Canadian dollar jumped sharply relative to its US counterpart on Wednesday following statements from the Bank of Canada. The Canadian dollar was up again on Thursday, having risen by over two cents this week.
The firmer currency makes exports less attractive to international buyers and also cuts into the profits of domestic processors.
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Bearish technical signals and the large South American soybean crop also put some pressure on canola prices, according to participants.
On the other side, a lack of significant farmer selling did provide some underlying support for canola, as producers turn their attention to spring field work.
The need to keep some weather premiums in the market was another supportive factor.
The CBOT soy complex was mixed in early activity, with gains in beans, but a slightly softer tone in soyoil.
About 4,500 canola contracts had traded as of 8:50 CDT, with the May/July spread a feature as traders continue to roll their positions out of the front month.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:50 CDT:
