By Phil Franz-Warkentin, Commodity News Service Canada
July 5, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:52 CDT Friday, as sharp weakness in the Canadian dollar and short-covering ahead of the weekend provided support.
After moving lower on Thursday when the US markets were closed for Independence Day the canola market was due for a corrective bounce, said a trader. The sharp weakness in the Canadian dollar, which was down by over half a cent relative to its US counterpart on Friday, contributed to the firmer tone in canola. The weaker currency helps crush margins improve and also makes exports more attractive.
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Mounting weather concerns in parts of western Canada were also providing some underlying support for canola, with heat stress said to be causing problems in some areas and excessive moisture leading to disease concerns in others.
However, conditions remain favourable for crop development across the majority of the Prairies, which limited the upside potential.
Declines in CBOT soybeans and soyoil also put some pressure on the canola market, according to participants.
At 10:52 CDT, about 4,000 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:52 CDT:
