By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 19 (MarketsFarm) – The ICE Futures canola market was stronger Friday morning, hitting fresh contract highs once again as the ongoing rally showed no signs of slowing down.
Concerns over tightening old crop supplies remained the key driver, as the market works to try and ration demand.
Gains in Chicago Board of Trade soybeans and soyoil also provided some underlying support.
However, a firm tone in the Canadian dollar, which was up by nearly half a cent relative to its U.S. counterpart, put some pressure on values.
Profit-taking at the highs and scale-up hedge selling also tempered the advances to some extent.
The latest Canadian Grain Commission weekly report showed a slowdown in export movement, with only 50,600 tonnes of canola exported during the week ended Feb. 14. That compares with the previous five-week average of 223,000 tonnes per week.
About 4,300 canola contracts had traded as of 8:37 CST.
Prices in Canadian dollars per metric ton at 8:37 CST:
Price Change
Canola Mar 770.00 up 19.10
May 735.50 up 8.60
Jul 702.50 up 7.40
Nov 589.40 up 6.00
