By Dave Sims, Commodity News Service Canada
WINNIPEG, January 23 – Canola contracts on the ICE Futures Canada platform were mostly stronger at 10:45 CST Friday, with speculative fund-buying and solid export demand as traders positioned themselves before the weekend.
“The exporter has been making Chinese sales with the weak Canadian dollar and they haven’t been able to pick up enough from the producer so they have to go in and buy futures,” said an analyst. The March/May spread had narrowed in to six dollars over from roughly nine on Thursday.
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“Putting more money into the May contract will give them more time to make sales,” he said, pointing out the volume in the May contract had exceeded the March.
The Canadian dollar was slightly weaker against its American counterpart which helped to make canola more attractive to international buyers. Spillover support also came from European rapeseed futures and US soymeal.
However, weakness in soybeans and soyoil were bearish for values.
The large South American soybean crop also undermined values.
Recent strength in the market leaves canola open to profit-taking, according to a report.
Around 16,000 contracts had traded as of 10:45 CST, Friday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CST:
