By Dave Sims, Commodity News Service Canada
WINNIPEG, January 2 – Canola contracts on the ICE Futures Canada platform were stronger at 10:40 CST Friday, following a sharp downturn in the Canadian dollar.
“It’s a short week so I think the volume will likely stay on the lighter side,” said Keith Ferley of RBC Dominion Securities in Winnipeg.
He noted canola was also enjoying spillover support from other players in the vegetable oil market too; namely soy oil and Malaysian palm oil. But Ferley stressed the main influence was coming from the loonie.
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“I think this is a six-year low in the Canadian dollar,” he said.
With the onset of the new tax season, canola could feel pressure from farmers who want to sell and commercial entities that wish to buy, according to a report.
Canola is feeling pressure from the looming harvest of the soybean crop in South America which is expected to begin in a few weeks.
Around 2,800 contracts had traded as of 10:40 CST, Wednesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CST:
