By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 28, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Monday, as bullish technical signals, the weaker Canadian dollar, and solid end user demand provided support.
The Canadian dollar moved further below parity with its US counterpart on Monday, accounting for some of the early buying interest in canola, according to participants. Domestic crushers were noted buyers, as the softer currency was helping their profit margins improve.
Speculative fund accounts were also said to be on the buy side, as the technical trend remains pointed higher for the time being in canola, said participants. Some buy stops were hit on the way up as canola traded at its strongest levels since October.
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Ongoing concerns over tightening Canadian canola supplies, and the need to ration demand going forward, were also said to be supportive.
However, increased farmer selling, as producers take advantage of the high cash prices currently available, did temper the upside potential in canola, said participants.
A softer tone in CBOT soyoil also put some pressure on canola.
About 16,985 canola contracts were traded on Monday, which compares with Friday when 20,996 contracts changed hands. Spreading accounted for about 10,216 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
