ICE Canada Review: Canola Drifts Lower Ahead Of Long Weekend

After dropping sharply relative to its US counterpart earlier in the week, the Canadian dollar managed to recover some lost ground on Friday. The firmer currency cut into domestic crush margins and accounted for some of the downward pressure against canola, with domestic crushers the noted sellers, according to a broker.

The generally favourable crop conditions across western Canada were also weighing on canola values, as producers were said to be making quick seeding progress in most areas. However, there were still enough regions on the dry side, while others could be too wet, to keep some weather related support in the market, a trader added.

Losses in CBOT soybeans late in the day, after that market had held onto gains for most of the session, also put some downward pressure on canola, said traders.

Trade was relatively subdued in the canola market on Friday, as many participants were reluctant to put on large positions ahead of May long weekend. Canadian markets will be closed for Victoria Day, on May 24, while the US markets remain open. The US Memorial Day holiday is the following week, May 31.

About 11,324 contracts traded on Friday, relatively steady with Thursday when an estimated 11,197 contracts traded. Spreading was a minor feature in canola, accounting for about 3,850 of the contracts traded.

Western barley futures were untraded an unchanged on Friday.

Prices are in Canadian dollars per metric ton.