The U.S. dollar fell sharply Wednesday, prompting an influx of investor money into commodities, including canola.
The greenback fell after Russia said it would diversify its foreign currency holdings.
Russia’s central bank specified the Canadian dollar as one of the currencies to which it would shift its reserves, which helped push the loonie up about one cent.
The value of the U.S. buck relative to a basket of other major currencies is now at its lowest level since the summer of 2008.
A weaker buck should support U.S. grain exports, and during the day Chicago corn and wheat futures rose.
Soybeans also edged higher but after a 12 week rally are seen to be at the top end of their range and ripe for profit taking. They closed up 8.5 cents at $10.545 US per bushel.
January canola settled Wednesday at $409.60 per tonne, up $5.50 on a volume of 8,078 contracts.
March rose $5.50 to close at $416.20 per tonne on a volume of 3,348 contracts.
The Bank of Canada said at noon the Canadian dollar was worth 95.23 cents US, up from 94.27 cents Tuesday. The U.S. dollar was worth $1.0501 Cdn.
The Winnipeg January barley contract fell $3.30 to $156.60 per tonne with 16 trades. March fell $2.90 to $158.10 per tonne with 10 trades.