Winnipeg, MB, Dec. 11, 2014

ICE Futures Canada canola contracts were higher on Thursday, testing resistance to the upside as a number of factors came forward to provide support.

Gains in the CBOT soy complex accounted for some spillover buying in canola, while chart signals were also pointing higher, according to participants. The weaker Canadian dollar was another supportive factor for the Winnipeg futures. The currency was trading below 87 US cents, its weakest level in five years, which should help boost crush margins and also make the crop more attractive to export customers pricing in US dollars.

On the other side, while most farmers appear content to wait on the sidelines until the New Year, light scale-up farmer selling did slow the upward move, said traders.

The relatively favourable South American crop prospects, large US soybean stocks, and continued weakness in crude oil also put some pressure on canola values.

About 37,412 canola contracts were traded on Thursday, which compares with Wednesday when 38,698 contracts changed hands. The January/March spread was a feature, especially as the inverse widened to over six dollars at one point during the session, said a broker.

Milling wheat, durum, and barley were all untraded.

Settlement prices are in Canadian dollars per metric ton.

                          Price      Change
Canola            Jan     435.00    up 3.10
                  Mar     430.10    up 3.60
                  May     430.10    up 2.30
Milling Wheat     Mar     233.00    unch
                  May     236.00    unch
Durum             Mar     357.50    unch
                  May     357.50    unch
Barley            Mar     177.00    unch
                  May     179.00    unch

Commodity News Service