By Phil Franz-Warkentin, Commodity News Service Canada
August 22, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were steady to slightly higher at 10:43 CDT Thursday, although values held close to unchanged for the most part as the market saw some consolidation in choppy trade.
The weaker Canadian dollar and fund short-covering provided support, according to participants. The Canadian currency was down by another third of a cent relative to its US counterpart after weakening sharply in recent sessions. The softer currency helps crush margins improve and makes prices more attractive to international buyers.
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The nearby chart signals have turned higher, which helped underpin canola as well, according to a broker.
However, farmers were said to be good sellers on the other side, which limited any attempts at moving higher. The expectations for a large crop and the looming harvest, with no immediate weather threats in the forecasts, accounted for the increase in farmer selling, said a broker.
A relatively softer tone in the CBOT soy complex also served to put some spillover pressure on the canola market.
At 10:43 CDT, about 12,000 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing prices adjusted following Wednesday’s close.
Prices in Canadian dollars per metric ton at 10:43 CDT:
