By Phil Franz-Warkentin, Commodity News Service Canada
May 26, 2015
Winnipeg – ICE Canada canola contracts were posting small gains in most months Tuesday morning, as advances in outside vegetable oil markets and the weaker Canadian dollar provided support.
The Canadian dollar was down by about two-thirds of a cent relative to its US counterpart in early activity, and has now lost more than two cents over the past week. The softer currency makes exports more attractive to international buyers and is also supportive for domestic crush margins.
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Spillover from the advances in CBOT soyoil contributed to the strength in canola as well, according to traders. Malaysian palm oil and European rapeseed futures were also up in overnight activity.
Mounting concerns over dry conditions in parts of Western Canada were underpinning the futures as well.
However, conditions for the US soybean crop remain relatively favourable and the large world soybean supply situation was said to be tempering the upside potential in canola.
About 5,700 canola contracts had traded as of 8:49 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:49 CDT:
