By Phil Franz-Warkentin, Commodity News Service Canada
September 12, 2014
Winnipeg – ICE Canada canola contracts were up Friday morning, seeing a modest correction following Thursday’s declines amid oversold price sentiment.
Gains in CBOT soybeans and soyoil contributed to the firmer tone in canola, according to participants, as the US markets recovered from Thursday’s losses as well.
Continued weakness in the Canadian dollar, which has lost over one-and-a-half cents relative to its US counterpart over the past week, helped underpin canola as well. The weaker currency helps crush margins and also makes canola more attractive to international buyers.
Recent cold and wet conditions across Western Canada were also supportive, although the forecasts are turning more favourable and many market participants are of the opinion that the canola crop has escaped any serious damage so far.
About 2,300 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged, after seeing some price revisions following Thursday’s close.
Prices in Canadian dollars per metric ton at 8:50 CDT:
