By Dave Sims, Commodity News Service Canada
WINNIPEG, May 22 – Canola contracts on the ICE Futures Canada platform were higher at 10:50 CDT Friday as weakness in the Canadian dollar compared to its US counterpart made canola more attractive on the international market.
Reports of frost over the weekend in various parts of Western Canada were bullish for values.
As well, traders are still digesting the news that the canola carryout in Canada will be significantly lower this year.
“Traders are a bit worried about the canola situation, but canola has gotten very, very expensive,” said an analyst, who noted the canola crush margin was collapsing.
However, losses in US soybeans and soyoil limited the gains.
As canola grows more expensive the chances of a corrective slide downward increases, according to the trader.
Large world supplies of soybeans also cast a bearish influence over the market.
Around 9,400 contracts had traded as of 10:50 CDT, Friday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
