By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 14 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Wednesday, correcting after Tuesday’s losses amid ideas the declines were overdone.
Domestic processors were likely on the buy side as crush margins have improved to some of their best levels of the past year over the past week, according to a trader.
Weakness in the Canadian dollar, which was down by roughly half a cent relative to its United States counterpart, contributed to the gains in canola, according to participants.
Weather concerns in parts of the Prairies were also supportive, with late developing crops at risk of an early frost.
However, conditions remain relatively favourable overall.
Chicago Board of Trade soybeans were posting small losses at midday, but soyoil was higher.
About 10,000 canola contracts traded as of 10:17 CDT.
Prices in Canadian dollars per metric tonne at 10:17 CDT:
Canola Nov 453.20 up 4.30
Jan 460.90 up 3.70
Mar 468.10 up 3.50
May 474.00 up 3.20