By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 20 – (MarketsFarm) – ICE Futures canola contracts were weaker at midday Wednesday, as a rally in the Canadian dollar put some pressure on values.
Stronger-than-expected inflation data sent the Canadian dollar climbing sharply higher relative to its United States counterpart. The stronger currency cuts into crush margins and also makes exports less attractive to international buyers.
Speculative profit-taking contributed to the declines in canola, as prices backed away from their nearby highs.
However, the underlying chart signals remain pointed higher, making any losses a buying opportunity from a technical standpoint. Gains in the Chicago Board of Trade soy complex also provided some spillover support.
About 9,000 canola contracts traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Price Change
Canola May 1,162.00 dn 6.30
Jul 1,144.30 dn 5.00
Nov 1,041.90 dn 3.70
Jan 1,041.20 dn 5.80
