WINNIPEG – The ICE Futures canola market traded lower on Tuesday morning in accordance with a strengthening Canadian dollar.
Despite the oilseed losing ground, one trader believes canola is receiving support from macroeconomic factors.
“It’s still showing some relative strength even though (canola’s) coming down,” the trader said. “Canola is quite undervalued within the oilseed complex. It’s probably cheaper than it can stay because it’s very attractive to end users. It will probably generate too much demand if it stays this cheap. Crush margins are going to have to come down to some degree.”
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Chicago soyoil was also trading lower, as well as European rapeseed. However, Malaysian palm oil was mostly higher. Despite rising incidences of COVID-19 in China, crude oil was only slightly weaker.
The Canadian dollar jumped three-tenths of a United States cent as Americans go to the polls for midterm elections.
Alberta is stuck in a deep freeze with high temperatures at around minus-15 degrees Celsius, while snow flurries fall in parts of Saskatchewan. Southern Manitoba will have a high of around plus-five degrees with rain in the forecast.
Nearly 17,300 canola contracts were traded as of 10:20 CST.
Price Change
Canola Jan 890.00 dn 6.50
Mar 887.90 dn 6.10
May 891.10 dn 4.70
Jul 893.20 dn 2.90
