By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 17 (CNS Canada) – ICE Futures Canada canola contracts were mixed at midday Wednesday, turning lower in the front months after posting gains in earlier activity.
A slightly softer tone in the Canadian dollar provided some underlying support for canola, as the currency moved lower despite a Bank of Canada announcement that it was raising interest rates.
However, any strength in canola was tempered by spillover from the Chicago Board of Trade soy market, which was down at midday.
Warmer weather across Western Canada, and expectations for an increase in farmer deliveries, also put some pressure on values, according to participants.
The narrowing old/new crop spread was a feature, with the July 2018 contract trading at only 40 cents above the new crop November 2018 contract at one point. That spread had been as wide as C$44 over back in the summer, and the possibility of moving to a carry situation was tied to declining concerns over tight ending stocks, according to a trader.
About 11,000 canola contracts had traded as of 10:56 CST.
