Canola futures were stronger on Wednesday, as the ongoing rally showed no signs of slowing down.
Tight old-crop supplies, uncertainty over new-crop weather, and a rally in Chicago Board of Trade soyoil all contributed to the firmer tone in canola. The May futures hit a new record high for the front month contract, trading at C$880.10/tonne at one point before running into some resistance.
Sharp gains in the Canadian dollar after the Bank of Canada's latest interest rate announcement put some pressure on values, as the rising currency cuts into crush margins and makes exports more expensive for global buyers.
Statistics Canada releases its first survey-based acreage estimates next week Tuesday. Traders generally expect to see increased canola area on the year, but the extent of the increase remains to be seen as competition from other crops and agronomic factors will limit plantings.
May canola was up $11.90 at $874.20, July gained $10.90 to $818.30 and November added $4.10 to $680.90.
Source: DePutter Publishing Ltd.
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