By Phil Franz-Warkentin, Commodity News Service Canada
August 23, 2013
Winnipeg – ICE Futures Canada canola contracts settled higher on Friday, as a rally in CBOT soybeans spilled over to provide support.
While Canada’s canola crop is thought to be in relatively good shape, the same can’t be said for the US soybean crop. Hot and dry Midwestern weather forecasts, and the resulting rally in soybeans there pulled canola higher as well on Friday, said traders.
Continued weakness in the Canadian dollar, which was holding near 95 US cents, provided some further support for canola, according to participants. Bullish technical signals were also encouraging some speculative buying, although values did run into some resistance and settled off their highs for the day.
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Increased farmer hedge selling, as Canadian farmers are in the early stages of harvesting what is generally expected to be a record large canola crop, also served to limit the upside in canola, said traders.
About 26,021 canola contracts were traded on Friday, which compares with Thursday when 19,256 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Friday after the grains saw some minor adjustments following Thursday’s close.
Settlement prices are in Canadian dollars per metric ton.
