The exchange rate was the key factor in Monday’s trade in the Winnipeg canola futures market as the Canadian dollar gained more than a penny from Friday.
The Group of 20 leading world economic powers agreed over the weekend to continue government stimulus measures until global economic recovery is better established.
That reassured investors, who once again shifted money from U.S. treasuries into higher risk investments such as the equities market and non-U.S. currencies, including the loonie.
When the loonie rises, it puts downward pressure on canola futures.
Canola was also pressured lower by good harvest weather.
At one point, January canola dropped as much as $9 but that sparked buying by crushers and speculators, causing a partial recovery.
There was no update on the trade situation with China, which will require canola shipments to be certified blackleg-free by Nov. 15.
January canola closed at $385.20, down $1.50 on a volume of 11,631 contracts.
March fell $1.20 to settle at $391.20 on a volume of 1,094 contracts.
At noon, the Bank of Canada said the Canadian dollar was worth 94.64 cents US, up from 93.28 on Friday. The U.S. dollar was worth $1.0566 Cdn.
Winnipeg November barley, under the old contract, was steady, closing at $175 per tonne. January, under the new contract, was steady at $155.90.
The weak U.S. dollar helped Chicago January soybeans climb 17 cents US to $9.72 per bushel, despite good harvest progress in the Midwest.
The U.S. Department of Agriculture said 75 percent of the soybean crop was now in the bin, up from 51 percent last week, but trailing the long-term average of 92 percent.
