WINNIPEG, March 30 (MarketsFarm) – The ICE Futures canola market was stronger Monday morning, as gains in the Chicago Board of Trade soy complex and weakness in the Canadian dollar provided support.
A slowdown in soybean exports out of South America, due to logistical issues tied to the COVID-19 pandemic, accounted for some of the buying interest in the soy complex that spilled into canola.
Seasonal spring road bans across the Prairies also provided some support, as farmer deliveries into the commercial pipeline should back off over the next few weeks.
The Canadian dollar was down by nearly a cent relative to its United States counterpart, which makes exports more attractive and underpins crush margins. However, the weakness in the currency was tied to losses in crude oil, which tempered the upside in canola to some extent.
Ongoing concerns over COVID-19 remained a bearish influence on the market, as efforts to slow the spread of the virus continued to keep world equity and commodity markets on edge.
About 9,000 canola contracts had traded as of 8:48 CDT.
Prices in Canadian dollars per metric ton at 8:48 CDT:
Canola May 466.40 up 3.50
Jul 475.30 up 3.60
Nov 484.80 up 3.20
Jan 490.20 up 2.30
Futures Prices as of March 30, 2020
Prices are in Canadian dollars per metric ton