Winnipeg Commodity Exchange canola futures struggled relative to allied oilseeds on Tuesday because of the strong Canadian dollar, limited export business and steady farmer selling, traders said. Canola ended 70 cents to $1.80 per tonne lower, with July down $1.10 at $370.80 and November down $1 at $388.40.
The Canadian dollar was at its highest level since mid-2006 and was within sight of a 29-year high, trading at $1.0985 or 91.03 US cents on Tuesday afternoon, up from $1.1070 or 90.33 US cents at Monday's close. The currency gains limited canola export sales opportunities, traders said, although strength in Chicago Board of Trade soy markets helped pare losses. "We can't do much business, but because of the strong American market, we can't go down," a trader said.
July soybean oil futures settled 0.11 US cent per lb higher at 34.60 cents and July soybeans were 7-1/2 US cents per bushel higher at US $7.78. Crushers were seen as light buyers, traders said, while funds were sidelined. Farmer selling has been steady as nearby canola cash prices approach $8.50 per bushel and new-crop prices $8 per bushel.
Rail maintenance workers at Canadian Pacific Railway, Canada's second-largest railway, were slated to begin a strike on Wednesday. But traders said they expected little market impact from the strike because of the slow export pace and because they expected large elevators able to handle large unit trains on the CP mainline to continue shipping canola.
Farmers made good progress planting canola in Saskatchewan and Manitoba, provincial crop reports showed, with canola planting 26 percent complete in Saskatchewan and nearly finished in many parts of Manitoba.
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