By Phil Franz-Warkentin, Commodity News Service Canada
May 17, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Friday, settling just below contract highs in the nearby July contract as a number of supportive price influences contributed to the rally.
The Canadian dollar was down by nearly a cent relative to its US counterpart on Friday. The weaker currency helps crush margins improve for domestic processors and also makes exports more attractive.
A turn higher in the CBOT soy complex and bullish technical signals were additional supportive factors, as some stops were triggered and speculative buying interest picked up, said traders.
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A lack of farmer selling, with producers generally busy with seeding, added to the firmer tone, said a broker. Weather forecasts calling for rain across much of the Canadian Prairies over the next few days were also supportive, as the moisture will likely cause further planting delays in some areas.
Profit-taking at the highs did temper the gains in canola. A slow down in commercial demand was also noted.
Canadian markets will be closed Monday for the Victoria Day long weekend, while the US grains and oilseeds will continue to trade.
About 13,932 canola contracts were traded on Friday, which compares with Thursday when 13,345 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Friday.
Settlement prices are in Canadian dollars per metric ton.
