By Dwayne Klassen, Commodity News Service Canada
May 24, 2013
Winnipeg – Canola futures on the ICE Canada trading platform ended Friday’s session mainly higher with only the nearby July contract suffering a decline. The realigning of the July/Nov spread was a key feature of the activity and helped to weigh on the nearby month, market watchers said.
Some of the price action seen in canola also consisted of position evening ahead of the US long holiday weekend. US markets will be closed on Monday for Memorial Day.
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Some of the downward price action seen in the July future was also related to reports that domestic processors have started to price their needs off the November future and not the July contract, brokers said.
Some of the price strength in the deferred canola futures also was linked to the weather outlook for the Canadian prairies, which was calling for a pick up in precipitation. The potential for a stoppage in seeding operations helped to fuel some minor buying interest, brokers said.
The downswing in the value of the Canadian dollar helped to generate some support for prices with the buying back of previously sold positions ahead of the weekend by speculative and commodity fund accounts also adding to the friendly price tone.
The gains posted by the deferred soybean contracts at the CBOT also provided some underlying support for canola.
Profit-taking tempered the advances as did the losses seen in CBOT soyoil futures
There were an estimated 19,063 canola contracts traded Friday, up from the 15,289 contracts that changed hands during the previous session.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
