By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 21 (MarketsFarm) – The ICE Futures canola market was stronger at midday Wednesday, but well off its earlier highs as gains in the Canadian dollar tempered the advances.
Tight old crop supplies, uncertainty over new crop weather, and a rally in Chicago Board of Trade soyoil all contributed to the firmer tone in canola.
The May futures hit a new record high for the front month contract, trading at C$880.10 per tonne at one point. However, the advances were much more subdued by midday.
The Bank of Canada kept its key overnight interest rate unchanged at 0.25 per cent in a policy announcement Wednesday morning, with an increasingly optimistic tone on the economy in the accompanying statement sending the Canadian dollar climbing sharply higher.
A stronger loonie cuts into crush margins and makes exports more expensive for international buyers.
About 14,500 canola contracts traded as of 10:43 CDT.
Prices in Canadian dollars per metric tonne at 10:43 CDT:
Canola May 869.10 up 6.80
Jul 813.20 up 5.80
Nov 679.10 up 2.30
Jan 677.70 up 2.10
Futures Prices as of April 21, 2021
Prices are in Canadian dollars per metric ton