By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, December 14 (CNS Canada) – ICE Futures Canada canola strengthened from earlier losses on Wednesday, as the Canadian dollar plummeted near the close.
The loonie lost close to one per cent after the US Federal Reserve announced it would be raising the country’s interest rates.
Weakness in the Canadian dollar is supportive for canola, as it makes the commodity more affordable to international buyers.
Gains in the Chicago Board of Trade soy oil and Malaysian palm oil markets added to the upside.
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Traders say canola is in a narrow-range heading into the holidays.
About 25,123 canola contracts traded on Wednesday, which compares with Tuesday when 20,202 contracts changed hands.
Durum and barley futures were untraded and unchanged, while milling wheat was revised lower after the close.
SOYBEAN futures at the Chicago Board of Trade were down by three to five cents per bushel on Wednesday, as improving weather forecasts out of Argentina weighed on prices.
Chart-based selling added to the declines, as the better South American crop prospects encouraged some year-end long liquidation.
Large US supplies remained bearish as well, although demand from both exporters and the domestic crush sector remains solid in the near-term.
However, the US Federal Reserve raised its key overnight interest rate to 0.75 per cent, as had been widely anticipated. The resulting strength in the US dollar could cut into export demand going forward.
SOYOIL futures were up on Wednesday, with adjustments to the soyoil/soymeal spread behind some of the strength.
SOYMEAL futures were down with soybeans on Wednesday.
CORN futures in Chicago traded within a narrow range on Wednesday, settling slightly higher in the most active contracts.
Speculative positioning was somewhat supportive, although the good South American weather and large US supplies remained bearish on the other side.
Losses in crude oil and the rising US dollar also kept corn under pressure.
WHEAT futures in Chicago were steady to up one cent per pound, with concerns over cold US temperatures behind some of the strength.
While snow-cover is thought to be adequate in many areas, the freezing weather is still raising some concerns over winterkill.
However, large world wheat supplies kept the market rangebound overall.
