By Phil Franz-Warkentin, Commodity News Service Canada
December 5, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were up sharply at midday Friday, as the market saw a corrective bounce to end the week after prices hit their lowest levels in over a month earlier in the week.
In addition to the speculative buying interest, domestic crusher demand was also supportive as crush margins showed some improvement. Gains in CBOT soyoil and a weaker tone in the Canadian dollar were both favourable for crush margins.
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A lack of significant farmer selling, as producers are thought to be holding out until the New Year, was also supportive, according to a trader.
However, canola was outpacing CBOT soybeans to the upside, and participants cautioned that values could back off of their session highs heading into the close.
The larger-than-expected canola production estimate released by Statistics Canada on Thursday was also a bearish factor in the background, as the larger crop will likely lead to bigger carryout supplies by the end of the crop year.
About 16,000 canola contracts had traded as of 10:52 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:52 CST:
