By Phil Franz-Warkentin, Commodity News Service Canada
November 27, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:45 CST Wednesday, as speculative short-covering and domestic crusher demand provided some support.
The weaker Canadian dollar, which was down by about half a cent relative to its US counterpart, accounted for some of the relative strength in canola as the softer currency makes crush margins more attractive.
Recent activity was also said to be helping shift the technical bias higher in canola, which encouraged some light chart-based short-covering, according to a broker.
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Early advances in CBOT soybeans were also supportive, but the US soy complex was turning lower at midsession.
Canada’s record large crop and logistical issues moving those large supplies were also overhanging the market.
Positioning ahead of the US Thanksgiving holiday was another feature, with choppy and volatile activity a possibility as traders move to the sidelines. US markets will be closed Thursday and only opened for a shortened session on Friday, while Canadian markets will continue to trade their normal hours.
About 15,000 canola contracts had traded as of 10:45 CST.
Milling wheat, durum, and barley futures were untraded on Wednesday, after wheat saw some minor price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:45 CST:
