By Phil Franz-Warkentin, Commodity News Service Canada
July 11, 2013
Winnipeg – ICE Canada canola contracts were weaker Thursday morning, with most of the selling pressure tied to the stronger tone in the Canadian dollar.
The Canadian currency was up by nearly a cent relative to its US counterpart as the financial markets reacted to the latest news out of the Federal Reserve. The stronger Canadian currency cuts into crush margins and makes canola more expensive for international buyers.
Relatively favourable crop conditions across most of western Canada were also bearish for prices, according to traders. However, there is also still more than enough uncertainty over new crop production to provide underlying support, with disease issues starting to come forward in some fields and heat stress being watched closely.
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A firmer tone in CBOT soybeans did provide some underlying support for canola.
The USDA will release updated supply/demand data later Thursday morning, and positioning ahead of the report was expected to lead to some choppiness in the North American grains and oilseeds.
About 2,500 canola contracts had traded as of 8:42 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Thursday morning after prices were adjusted by ICE Canada after Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:42 CDT:
