By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 9 (MarketsFarm) – The ICE Futures canola market was weaker Monday morning, nearing contract lows as bearish chart signals and strength in the Canadian dollar weighed on values.
The Canadian dollar was trading above 76 U.S. cents Monday morning, hitting its best levels relative to its United States counterpart since July. The stronger currency cuts into crush margins and makes exports less attractive to international buyers.
A softer tone in Chicago Board of Trade soyoil also weighed on canola, although soybeans were trading to both sides of unchanged.
Reports of light frost in parts of the Prairies over the weekend provided some underlying support, with cool and wet weather forecasts expected to cause harvest delays over the next week.
About 2,100 canola contracts had traded as of 8:40 CDT.
Prices in Canadian dollars per metric ton at 8:40 CDT:
Canola Nov 440.30 dn 2.50
Jan 447.80 dn 2.90
Mar 453.80 dn 4.00
May 460.10 dn 4.00