By Phil Franz-Warkentin, Commodity News Service Canada
November 22, 2013
Winnipeg – ICE Canada canola contracts were holding onto small gains Friday morning, seeing some follow-through buying on Thursday’s rally as the nearby technical bias has shifted higher. Gains in CBOT soybeans were also supportive.
Continued weakness in the Canadian dollar, which was trading below 95 US cents Friday morning, added to the firmer tone in canola.
The softer currency, together with recent strength in most outside vegetable oil markets, has helped crush margins move to their highest levels in months, which supported canola.
However, CBOT soyoil and Malaysian palm oil were both a little lower today, which tempered the upside potential in canola, said traders.
Canada’s large crop, good prospects for soybeans in South America, and profit-taking ahead of the weekend also put some pressure on values, according to participants.
About 6,000 canola contracts had traded as of 8:45 CST.
Milling wheat, durum, and barley futures were all untraded after wheat saw some adjustments following yesterday’s close.
Prices in Canadian dollars per metric ton at 8:45 CST:
