By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 25, 2013
Winnipeg – ICE Canada canola futures were mostly stronger Friday morning, seeing some independent strength once again as concerns over tightening supplies and the weaker Canadian dollar provided support.
The Canadian currency drifted further below parity with its US counterpart Friday morning, which was helping encourage some fresh exporter and domestic crusher buying interest, according to participants.
The technical trend also continues to point higher in canola, bringing in some speculative buying interest as the March contract traded at levels not seen since October.
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However, a softer tone in the CBOT soy complex did temper the upside potential in canola. With canola starting to look overpriced compared to soybeans, traders cautioned that the Canadian futures may run into some profit-taking before the end of the day.
Increased farmer hedges, as producers take advantage of the solid cash prices currently available, also tempered the upside.
About 3,200 canola contracts had traded as of 8:46 CST, with inter-month spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:46 CST:
