By Glen Hallick, MarketsFarm
WINNIPEG, July 14 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were swinging higher at midday Thursday due to the sharp drop in the Canadian dollar, according to a trader.
The loonie took a tumble earlier today as the United States dollar surged upward. After falling to 75.62 U.S. cents the Canadian dollar was at 76.09, compared to Wednesday’s close of 77.07.
“If it wasn’t for the Canadian dollar, we would be down $12 to $13 [per tonne] in canola,” the trader stated.
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Some pressure to temper those increases came from the “fairly good canola crop brewing on the Prairies,” that could produce upwards of 19 million to 20 million tonnes at harvest time. The trader also noted that Australia was poised to have a large canola harvest as well.
“It’s going to be a pretty healthy year for canola supply,” he said.
Rain has been forecast for parts of the eastern Prairies, while the western portion is expected to remain hot and dry.
Approximately 8,400 canola contracts were traded as of 10:30 CDT.
Prices in Canadian dollars per metric tonne at 10:30 CDT:
Price Change
Canola Nov 842.70 up 12.80
Jan 849.80 up 12.10
Mar 858.50 up 13.30
May 861.40 up 10.60
