By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 3 (CNS Canada) – ICE Futures Canada canola contracts were down sharply at midday Friday, backing away their nearby highs as traders booked profits ahead of the weekend.
Strength in the Canadian dollar relative to its U.S. counterpart contributed to the weakness in canola, as the currency bounced back above 78 U.S. cents following some better-than-expected domestic jobs data.
Losses in the Chicago Board of Trade soy complex were another bearish influence, as the U.S. futures also backed away following yesterday’s advances.
However, solid end-user demand underneath the market helped limit the losses, according to participants. The latest weekly Canadian Grain Commission data showed exports-to-date running 300,000 tonnes ahead of the year-ago pace, while the domestic crush is only behind by about 100,000 tonnes.
About 9,000 canola contracts had traded as of 10:49 CDT.
