By Phil Franz-Warkentin, Commodity News Service Canada
August 9, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:51 CDT Friday in choppy activity as traders positioned themselves ahead of the weekend.
Canola was bouncing around both sides of unchanged, but was trending lower at midsession with declines in CBOT soybeans accounting for some of the selling pressure. The USDA releases updated production estimates on Monday, and positioning ahead of the report was a feature on both sides of the border.
Continued strength in the Canadian dollar, which jumped sharply relative to its US counterpart on Thursday, added to the softer tone in canola.
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Relatively favourable crop conditions across western Canada weighed on values as well, as expectations for large yields continue to overhang the market.
However, the lateness of this year’s canola crop will leave many fields vulnerable to frost, which was serving to keep some risk premiums in the futures.
A lack of significant farmer selling and scale-down end user bargain hunting were also said to be somewhat supportive.
At 10:51 CDT, about 6,000 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing prices updated by the Exchange after Thursday’s close.
Prices in Canadian dollars per metric ton at 10:51 CDT:
