By Dave Sims, Commodity News Service Canada
WINNIPEG, November 21 – Canola contracts on the ICE Futures Canada platform were up at 10:55 CDT, tracking the US soy complex higher despite a stronger Canadian dollar.
“The Canadian dollar is up, so canola is holding up quite well despite that,” said an analyst.
He noted canola tracked soybeans higher in early trading, then waited to see if the US market would correct lower, which is did.
“There’s no big trends right now, it’s swing and chop,” he said, adding South American weather was one variable that needed to be watched.
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The Canadian dollar was relatively steady on Wednesday. The loonie closed at US$0.7250 or US$1=C$1.3794, compared to US$0.7252 or US$1=C$1.3789…
Gains in European rapeseed futures provided some support for canola as well, according to traders.
Farmer selling has been slow, and is not expected to improve significantly until the new year, which is underpinning the market.
Malaysian palm oil was lower which limited the upside, participants said.
So far the prospects of a good soybean crop in Brazil appear favourable, which has been bearish for values.
About 8,000 canola contracts had traded as of 10:55 CDT, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:55 CDT:
