By Phil Franz-Warkentin, Commodity News Service Canada
June 5, 2015
WINNIPEG – Canola contracts on the ICE Futures Canada platform were lower at midday Friday, retreating from earlier advances as traders were booking profits ahead of the weekend.
The old crop July contract briefly traded above the psychological C$500 per tonne level in early activity, while the more active November futures also tested nearby highs. However, canola has already posted large advances this week, and some participants were looking to square positions and book some profits on Friday, according to a broker.
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Losses in CBOT soybeans put some pressure on canola as well, although soyoil was higher in the US market.
However, weather forecasts calling for continued lack of moisture across the dry regions of Western Canada did remain supportive, according to traders.
The charts have also turned bullish overall, according to a broker who said the funds had room to add to their expanding long positions.
The Canadian dollar was chopping around within a narrow range on Friday, providing little clear direction for canola.
About 23,000 canola contracts had traded as of 10:52 CDT.
Milling wheat, durum, and barley were all untraded.
