By Phil Franz-Warkentin, Commodity News Service Canada
June 21, 2013
Winnipeg – ICE Futures Canada canola contracts traded to both sides of unchanged on Friday, but settled with small losses in most months as the weaker tone in the CBOT soy complex spilled over to weigh on values.
While speculative selling and profit-taking on recent gains weighed on values by the close, canola did manage to show some independent strength relative to soybeans for most of the session.
The Canadian dollar was sharply weaker relative to its US counterpart on Friday. The softer currency helped crush margins improve and domestic processors were said to be showing good demand throughout the session.
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Uncertainty over crop prospects across western Canada kept some caution in the futures. Recent heavy rains have caused some localized problems, but most canola fields are still thought to be in good condition. With old crop supplies on the tight side, traders continue to follow the production issues very closely. Statistics Canada releases its latest acreage estimates on June 25, and positioning ahead of that report was another feature.
About 10,289 canola contracts were traded on Friday, which compares with Thursday when 12,466 contracts changed hands. Spreading accounted for about 4,652 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Friday.
Settlement prices are in Canadian dollars per metric ton.
