By Terryn Shiells, Commodity News Service Canada
August 16, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 10:49 CDT Friday, following the gains seen in Chicago soyoil, analysts said.
The downswing in the value of the Canadian dollar provided further support, as it made canola more attractive on the export market.
The weaker Canadian currency also helped crush margins improve, which brought in some buying interest from crushers.
Short covering by smaller speculative accounts was also responsible for some of the upward price action, brokers noted.
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Steady commercial and export demand was also supportive, as were concerns about Prairie canola crops being susceptible to early frost damage.
However, a pickup in farmer selling at the highs helped to keep a lid on the advances, as did forecasts calling for more favourable weather across Western Canada next week.
Expectations that the Canadian canola crop will be record large, as long as it doesn’t run into any weather or frost issues, were also bearish.
Volume was described as moderate, with very little spread trade. As of 10:49 CDT, about 4,815 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged after wheat prices saw some revisions by the Exchange after the close on Thursday.
Prices in Canadian dollars per metric ton at 10:49 CDT:
