By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Jan. 15 (CNS Canada) – ICE Futures Canada canola contracts settled with small losses on Monday. Activity was thin and choppy as many participants kept to the sidelines with the US markets closed for the Martin Luther King Jr. holiday.
Strength in the Canadian dollar accounted for some of the eventual weakness in the canola market, as the rising currency cuts into crush margins and makes exports less attractive to global buyers.
Improving South American crop conditions also weighed on prices.
Ample supplies in the commercial pipeline added to the softer tone, although a lack of significant farmer selling on the other side did provide some support.
About 3,388 canola contracts traded on Monday, which compares with Friday when 13,107 contracts changed hands. Spreading accounted for 1,458 of the contracts traded.
