By Dwayne Klassen, Commodity News Service Canada Inc.
Winnipeg – August 8/12 – Canola futures on the ICE Canada trading platform finished Wednesday’s session on a mostly firmer footing after experiencing movement to both sides of the plus/minus line during the day. Much of the upward price action in canola came late in the session and was in reaction to the rally seen in CBOT soybean and soyoil values, market watchers said.
The buying back of previously sold positions by local and fund accounts also provided some of the upward price momentum seen in canola, traders said.
Steady commercial demand, said to be pricing old export business to Japan as well as covering some domestic crusher needs, further underpinned canola.
Talk of disease issues in canola fields across the Canadian prairies helped to fuel some light buying, traders said. There were also ideas that while canola production in western Canada will be large, the crop will not be as big as first anticipated.
Early weakness in canola was associated with the new contract lows established by Malaysian palm oil futures in overnight activity. The continued strength of the Canadian dollar, which was above parity with its US counterpart in late Wednesday afternoon activity, also was viewed as an undermining price influence for canola, brokers said.
The quick development of canola in western Canada and the advancing harvest operations in some locations, also restricted the price advances seen in the commodity.
An increase in farmer deliveries of canola into the cash pipeline also tempered the price strength.
There were an estimated 16,936 canola contracts traded Wednesday, up from the 14,076 contracts that changed hands during the previous session.
There were no milling wheat, durum or barley contracts traded.
Prices are in Canadian dollars per metric ton.
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton