ICE Canada Review: Canola Higher, Testing Resistance

By Phil Franz-Warkentin, Commodity News Service Canada

Jan. 18, 2013

Winnipeg – ICE Futures Canada canola contracts closed higher on Friday, boosted by solid end user and speculative buying, as a weaker Canadian dollar provided support.

The weakness in the Canadian dollar provided the catalyst for the gains in canola, as the softer currency made exports more attractive and was also helping crush margins improve, said a trader.

The improving crush margins brought domestic processors back to the buy side, after they were sellers earlier in the week, according to participants. Talk of fresh export demand was also circulating the market, although no new business could be confirmed.

Supportive technical signals as the March contract neared the C$600 per tonne level, added to the gains in canola. However, the contract was unable to close above that psychological point, with profit-taking coming forward at the close.

The relatively weaker tone in the CBOT soy complex did temper the upside in canola. Expectations for large South American soybean supplies also continue to overhang the oilseed markets.

US markets will be closed Monday for Martin Luther King Jr. Day, and Canadian traders said the lack of direction from the US could lead to some choppy activity in canola as Canadian markets will remain open.

About 20,313 canola contracts were traded on Friday, which compares with Thursday when 20,079 contracts changed hands. Spreading accounted for about 14,240 of the contracts traded.

Milling wheat, durum, and barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.

Commodity futures

Futures Prices as of April 24, 2014

Canola Price Change
March598.405.90
May588.906.70
July581.307.60
Milling Wheat Price Change
March291.00
May294.00
Durum Price Change
March312.40
May316.40
New Barley Price Change
March242.90
May243.90

Prices are in Canadian dollars per metric ton

Respond





You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

COPA MedallionAGCanada.com was a 2012 COPA Finalist.
©2014 AGCanada is a production of FBC Limited Partnership a division of Glacier Media Inc.
Please refer to Copyright Page for details.