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.
Read Also
Canadian Financial Close: Loonie drops, new record for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar tumbled on Friday but still ended the week slightly higher than the last….
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: