|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 14, 2012|
|Winnipeg – ICE Futures Canada canola contracts were stronger on Friday, setting new contract highs in many months. The latest stimulus measures announced by the US Federal Reserve yesterday accounted for much of the early buying interest seen in the North American commodity markets on Friday, including canola, said traders. Buy stops were hit on the way up in canola, although the market did run into some technical resistance.
The fundamentals are also supportive for canola, as concerns mount over yield losses in parts of western Canada and the likelihood of tighter supplies, said participants.
While the recent strength of the Canadian dollar did remain a bearish influence overhanging the market, the currency was taking back some of its recent gains relative to its US counterpart on Friday. The strong currency cuts into crush margins and makes exports less attractive.
Profit-taking in the CBOT soy market, and the potential for a larger South American soybean crop, were said to have limited the gains in canola.
About 18,511 canola contracts were traded on Friday, which compares with Thursday when 12,626 contracts changed hands. Spreading accounted for about 12,416 of the contracts traded. Milling wheat, durum, and barley futures were all untraded during the session. However, wheat and barley prices were both revised higher after the close.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 651.60 up 5.50
Jan 655.10 up 5.10
Mar 655.60 up 5.20
Milling Wheat Oct 304.50 up 4.90
Dec 310.90 up 4.90
Durum Oct 306.90 unch
Dec 311.40 unch
Barley Oct 250.30 up 0.30
Dec 255.30 up 0.30
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton