By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 10 (MarketsFarm) – The ICE Futures canola market was weaker at midday Wednesday, as a rally in the Canadian dollar weighed on the market.
The Canadian dollar was up by roughly three-quarters of a cent relative to its United States counterpart, hitting its highest level in two months. The strong currency cuts into crush margins and makes exports less attractive to international buyers.
Relatively favourable Prairie crop conditions for the time being also weighed on values, although there remain enough areas of concern to provide some underlying support.
Gains in outside markets, including the Chicago soy complex and Malaysian palm oil, were also supportive. However, European rapeseed was lower on the day.
About 8,300 canola contracts traded as of 10:28 CDT.
Prices in Canadian dollars per metric tonne at 10:28 CDT:
Canola Nov 849.20 dn 4.70
Jan 859.30 dn 4.30
Mar 865.60 dn 4.60
May 865.60 dn 8.00
