|By Phil Franz-Warkentin, Commodity News Service Canada|
|August 3, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed higher on Friday, seeing a technical correction to end the week as the market found some spillover support from the gains in the CBOT soy complex.
Declining yield prospects and positive US economic data accounted for much of the strength in soybeans, and some of that buying interest spilled into the canola market as well, said traders.
In addition to the hot, dry US weather conditions underpinning the oilseed markets in general, uncertainty over the size of the Canadian canola crop was also said to be supportive. Disease and weather stress could limit the yield potential in some areas, helping keep some weather premiums in the Canadian futures.
However, the stronger Canadian dollar, which moved above parity with its US counterpart, did temper the advances in canola, said participants. Mounting harvest pressure also kept the market relatively range-bound.
About 5,837 canola contracts were traded on Friday, which compares with Thursday when 8,359 contracts changed hands. The light volumes led to some choppiness as participants moved to the sidelines ahead of the long weekend. Canadian markets will be closed August 6 for a civic holiday.
Milling wheat was higher, following the US futures, although only two contracts actually changed hands. Durum and barley futures were both untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 619.00 up 5.80
Jan 620.60 up 5.60
Mar 619.10 up 3.40
Milling Wheat Oct 301.00 up 3.50
Dec 308.00 up 3.00
Durum Oct 311.50 unch
Dec 316.00 unch
Barley Oct 264.50 unch
Dec 269.50 unch
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton