By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 5 (CNS Canada) – ICE Futures canola contracts were stronger at midday Wednesday, as a sharp decline in the Canadian dollar provided support.
The currency was down by two-thirds of a cent relative to its United States counterpart in reaction to the Bank of Canada’s decision to keep interest rates unchanged. The weaker Canadian dollar was supportive for crush margins.
However, uncertainty in the U.S. soybean market kept some caution in canola as well, with market participants still waiting for any concrete export news to come from the tentative trade truce with China.
Statistics Canada releases its updated production estimates on Thursday, and positioning ahead of that report was another feature in canola.
About 15,000 canola contracts traded as of 10:42 CST, with intermonth spreading a feature.