Canola Futures Rally on Weaker Canadian Dollar and CBOT Soybean Values

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) saw a rally in canola futures at mid-session, with prices trading higher due to a weaker Canadian dollar and the upward rebound in CBOT soybean and soyoil values. Light exporter pricing and steady domestic crusher demand contributed to the strength displayed by canola, while rumors of export interest from China and Pakistan further underpinned the futures. Despite a drop in the value of the Canadian dollar, the large supply situation in Western Canada and bearish chart signals tempered the advances.

Key Takeaways:

  • Canola futures at the WCE traded higher at mid-session due to a weaker Canadian dollar and the rally in CBOT soybean and soyoil values, market watchers said.
  • Light exporter pricing and steady domestic crusher demand contributed to the strength displayed by canola.
  • Rumors of export interest from China and Pakistan further underpinned canola futures.
  • A drop in the value of the Canadian dollar stimulated some commercial buying, with oversold price sentiment helping to generate the rally.
  • Delivery notices against the November future were in line with expectations and had little market impact.
  • 5,651 canola contracts had changed hands at mid-session.
  • 1,245 Jan/Mar contracts had been spread by midday.
  • Western barley futures were steady to fractionally firmer at mid-session in quiet trade.
  • Strength in CBOT corn futures and reluctant farmer selling supported western barley futures.
  • Feed wheat futures were steady to slightly firmer in choppy activity.
  • 174 feed wheat contracts had changed hands at mid-session, while 366 western barley contracts had traded.

Statistics:

  • Canola futures traded higher at mid-session, with prices rising due to a weaker Canadian dollar and the rally in CBOT soybean and soyoil values.
  • 5,651 canola contracts had changed hands at mid-session.
  • 1,245 Jan/Mar contracts had been spread by midday.
  • Western barley futures were steady to fractionally firmer at mid-session, with 366 contracts traded.
  • Feed wheat futures were steady to slightly firmer in choppy activity, with 174 contracts traded.

Sources:

  • Resource News International, via COMTEX
  • Winnipeg Commodity Exchange (WCE)
  • CBOT (Chicago Board of Trade)
  • Canadian dollar exchange rate
  • Canadian canola oil export data to China and Pakistan