By Phil Franz-Warkentin, Commodity News Service Canada
April 17, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Wednesday, with the weaker Canadian dollar, gains in CBOT soyoil, and weather issues in the Canadian prairies all providing support.
The Canadian dollar was down by about half a cent relative to its US counterpart on Wednesday. The softer currency was helping crush margins improve, and domestic processors were noted buyers, according to participants.
Ongoing concerns over the cold and wet conditions seen across much of western Canada, and the likelihood of planting delays, remained supportive for canola as well, said traders.
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Canola received an added boost as the day progressed, as CBOT soyoil managed to recover from early declines to turn higher. The gains in soyoil contributed to the improving crush margins.
However, canola did run into the upper edge of its recent trading range, which limited the gains. The ongoing uncertainty in the outside financial markets, with gold, crude oil, and equities all pointed lower on Wednesday, kept some caution in the canola market as well, said traders.
About 15,670 canola contracts were traded on Wednesday, which compares with Tuesday when 32,821 contracts changed hands. Inter-month spreading was a feature, accounting for about 12,294 of the contracts traded.
Milling wheat and durum futures were untraded and unchanged on Wednesday. Barley futures were also untraded, but the new crop contracts were revised lower after the close.
Settlement prices are in Canadian dollars per metric ton.
