ICE Close: Weak Canadian Dollar Supports

Weakness in the Canadian dollar provided support as canola futures gained ground on Wednesday.

The Bank of Canada this morning kept its key overnight interest rate unchanged at 1.75% while lowering its expectations for future rate hikes in the accompanying statement. The Canadian dollar lost two-thirds of a cent relative to its U.S. counterpart as a result and hit its weakest levels in 18 months, which was supportive for canola crush margins.

However, uncertainty in the U.S. soybean market kept some caution in canola, with market participants still waiting for any concrete export news to come from the tentative trade truce between the U.S. and China.

Statistics Canada releases its updated production estimates on Thursday, and positioning ahead of that report was another feature.

January canola gained $2.30 to $484.70, March was up $2 at $492 and May added $1.80 to $499.50.

Source: DePutter Publishing Ltd.

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