By Glen Hallick, MarketsFarm
WINNIPEG, May 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at midday Tuesday due to a weaker Canadian dollar, according to a trader.
“It seems to be getting most of its support from the Canadian dollar. Sometimes the dollar will have an immediate influence on canola,” he commented.
The Canadian dollar was pulling back on Tuesday, with the loonie falling to 73.39 U.S. cents, compared to Monday’s close of 73.82.
The trader also pointed to some short covering in the oilseed market, but warned this was only a short-term bounce.
Support for canola came from upticks in Chicago soyoil, Malaysian palm oil, and most European rapeseed contracts. Losses in Chicago soymeal put pressure on the Canadian oilseed, while soybeans were mixed. Sharp declines in global crude oil prices weighed on the vegetable oils.
Approximately 13,000 canola contracts were traded as of 10:21 CDT.
Prices in Canadian dollars per metric tonne at 10:21 CDT:
Price Change Canola Jul 713.20 up 8.60 Nov 687.80 up 5.20 Jan 694.40 up 6.10 Mar 698.80 up 5.90
