By Terryn Shiells, Commodity News Service Canada
June 7, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were firmer Friday morning, consolidating following recent sharp losses, analysts said.
Canola values also found some spill over support from the gains seen in the Chicago soybean complex.
Positioning ahead of the weekend also fuelled some of the advances, as did continued concerns about the tight Canadian canola supply situation.
Uncertainty surrounding the weather situation throughout the growing season and the need to keep a weather premium in the market provided further support.
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However, the gains were limited by the upswing in the value of the Canadian dollar, which hurt canola crush margins.
Reports that canola crops in western Canada are off to a good start also tempered the advances, as did spill over pressure from the losses seen in Malaysian palm oil and European rapeseed futures overnight.
Strong competition from the large South American soybean crop, which is now flooding the market, put some downward pressure on canola values as well.
As of 8:37 CDT, about 3,715 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:37 CDT:
