WINNIPEG, Manitoba--Intercontinental Exchange canola futures continue to make small gains at midday Tuesday, due to the effects of a stronger United States dollar according to a trader.
"There's big currency action today. The U.S. dollar is extremely strong and that's giving some support," the trader said.
At mid-Tuesday morning, the United States greenback was up nearly 0.900 of a point on the U.S. Dollar Index. That pulled the loonie down to 74.26 U.S cents, compared to Monday's close of 74.43.
The trader also noted that Malaysian palm oil has jumped eight per cent in value over the last two weeks, which has underpinned canola and other oilseeds.
Palm oil was still on the rise Tuesday, along with slight upticks in European rapeseed. However small declines in global crude oil prices weighed on vegetable oils.
As the U.S. markets resumed trading following Martin Luther King Day, additional pressure on canola came from losses in Chicago soybeans and soyoil. That was countered somewhat by higher soymeal values.
Approximately 16,700 canola contracts were traded as of 11:32 EST, with prices in Canadian dollars per metric ton:
Canola
Price Change
Mar 631.40 up 2.70
May 637.10 up 1.80
Jul 642.10 up 1.10
Nov 640.90 up 1.70
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-16-24 1200ET
