By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 6 (CNS Canada) – ICE Futures Canada canola contracts were holding within a dollar of unchanged in the most active contracts at midday Wednesday, as the market reacted to a number of outside influences.
Statistics Canada released its ending stocks report this morning, pegging canola supplies as of July 31 at 1.35 million tonnes. That was at the low end of trade estimates and well off the 2.09 million carried over the previous year. The number was somewhat supportive, as it was seen highlighting the tight supply situation.
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Gains in Chicago Board of Trade soybeans also provided some spillover support for canola, according to participants.
However, the advancing Western Canadian harvest tempered the gains.
A sharp rise in the Canadian dollar relative to its US counterpart, following a decision by the Bank of Canada to raise interest rates, also weighed on canola. The strengthening currency cuts into crush margins and also makes exports less attractive to international buyers.
About 13,500 canola contracts had traded as of 10:57 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
