By Terryn Shiells, Commodity News Service Canada
January 7, 2014
WINNIPEG – Canola contracts on the ICE Futures Canada platform were slightly higher at 10:37 CST Tuesday, lifted by the sharp downswing in the value of the Canadian dollar, which was down about three quarters of a cent against the US dollar.
The weaker Canadian dollar helped to spark some crusher buying activity which was responsible for some of the upward price movement, analysts said.
The firmer tone seen in nearby Chicago soybean futures also helped to underpin the market, as did ideas that canola is undervalued compared to other oilseeds.
However, spillover pressure from the losses seen in Chicago soyoil, Malaysian palm oil and European rapeseed futures limited the upside.
Weakness in the Canadian cash market, due to logistical problems and huge supplies, also continued to overhang prices.
Activity was starting to return back to normal after a slow holiday period, brokers said. As of 10:37 CST Tuesday, about 11,240 contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:37 CST:
