By Phil Franz-Warkentin, Commodity News Service Canada
August 23, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting solid gains at 10:47 CDT Friday, taking most of their direction from the rally seen in the CBOT soy complex.
“It’s all beans, beans, beans, and canola is just tagging along,” said a Winnipeg-based broker. He said the hot and dry Midwestern weather conditions causing CBOT soybeans to rally were providing indirect support for canola values.
Continued weakness in the Canadian dollar provided some support for canola as well. The softer currency helps crush margins improve and makes prices more attractive to international buyers. Bullish technical signals were also encouraging some speculative buying, according to participants.
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However, Canadian farmers are in the early stages of harvesting what is generally expected to be a record large canola crop. The good production prospects, together with a lack of immediate weather threats across the Canadian Prairies, had farmers making sales on a scale up basis, said a broker.
At 10:47 CDT, about 17,000 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing prices adjusted following Thursday’s close.
Prices in Canadian dollars per metric ton at 10:47 CDT:
