By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 28, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were higher at 10:45 CST Monday, despite losses in the CBOT soy complex. Continued weakness in the Canadian dollar accounted for some of the relative strength.
After dropping below parity with the US dollar last week, the Canadian currency remained under pressure on Monday. The softer currency makes exports more attractive and also helps crush margins improve.
Crushers were noted buyers, according to a broker. Speculative fund accounts were also said to be on the buy side, as the chart signals are pointed higher for the time being in canola.
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Ongoing concerns over tightening Canadian canola supplies, and the need to ration demand going forward, were also supportive, according to participants.
However, increased farmer selling as producers take advantage of the high cash prices currently available did temper the upside potential in canola, said traders.
The losses in CBOT soybeans and soyoil were also putting some pressure on canola, with expectations for large South American soybean crops behind some of the weakness in the US market.
At 10:45 CST, about 10,000 canola contracts had changed hands, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CST:
