By Phil Franz-Warkentin, Commodity News Service Canada
May 17, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were sharply stronger at 10:50 CDT Friday, moving above nearby resistance as a weaker Canadian dollar provided the catalyst for the move higher.
The Canadian dollar was down by nearly a cent relative to its US counterpart on Friday. The weaker currency was helping crush margins improve for domestic processors and also makes exports more attractive.
Bullish technical signals contributed to the gains in canola, as the July contract moved above chart resistance and triggered some additional speculative buying interest, according to a broker.
Read Also
Canadian Financial Close: Loonie rises higher, gold falls
Glacier FarmMedia | MarketsFarm – The Canadian dollar continued its rise on Wednesday with its best close in nearly three weeks….
A lack of farmer selling, with producers generally busy with seeding, added to the firmer tone, said the 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, according to participants. A mixed tone in the CBOT soy complex also kept some caution in canola.
Canadian markets will be closed Monday for the Victoria Day long weekend, while the US grains and oilseeds will continue to trade.
At 10:50 CDT, about 7,200 canola contracts had changed hands, with intermonth spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
