By Phil Franz-Warkentin, Commodity News Service Canada
March 15, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:50 CDT Friday, finding some support from the rally seen in CBOT soyoil.
Adjustments to the soyoil/soymeal spread in the US market was said to be behind the rally in soyoil, which underpinned canola due to the commodity’s high oil content. However, canola has outperformed the soy complex recently, and was actually losing a little ground compared to the product values overall, said a broker.
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Domestic processors are seeing profitable values, and after accumulating large hedges recently they are “dumping their crush off,” according to the broker.
Speculators were largely on the sidelines, with canola looking too high to buy aggressively, the broker added. Farmers are also content to hold off on sales for the time being, although improving new crop pricing was said to be encouraging some forward pricing.
The Canadian dollar was firmer on Friday, which limited the upside potential in canola, said traders.
At 10:50 CDT, about 6,700 canola contracts had changed hands, with intermonth spreading only a small feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
