By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 14 (CNS Canada) – ICE Canada canola contracts were mixed Wednesday morning, with a firm tone in the nearby July contract and losses in the new crop months.
Continued strength in the Canadian dollar, which has rallied sharply relative to its US counterpart this week, remained bearish for canola as the rising currency cuts into crush margins and makes exports less attractive to international buyers.
Yesterday’s move lower also did some damage from a chart standpoint, according to analysts, which contributed to the declines.
Improving weather conditions in some areas of Western Canada also weighed on prices.
However, tightening old crop supplies kept the nearby July contract supported to start the day. There are also still more than enough areas of concern across the Prairies to keep a weather premium in the market.
About 2,800 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded.
