ICE Close: Dollar, Harvest Pressure Undermine Canola

Canola futures ended steady to weaker on Tuesday, as harvest pressure and a strong Canadian dollar weighed on the market.

The Canadian dollar continued to trade at just over 76 cents US, riding the coattails of last week's rally and keeping a lid on canola values. A stronger Canadian dollar makes canola appear more expensive and thus less attractive to foreign buyers. The ongoing Prairie harvest amid heavy old-crop ending stocks added to the pressure on canola.

A Winnipeg-based trader said technical biases are trending lower. If prices break below C$437/tonne, that could result in additional technical selling, he said.

Statistics Canada will release model-based production estimates on Thursday, which should help provide further direction for the canola market.

November canola slipped 40 cents to $439.40, January was down 50 cents at $447.20 and March dropped 40 cents to $454.50.

Source: DePutter Publishing Ltd.

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