By Dwayne Klassen, Commodity News Service Canada
Winnipeg – September 5/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:26 CDT Wednesday morning. Aggressive pricing of old export business to Japan by commercials fuelled the upward price action seen in canola, market watchers said.
Additional support in canola was stemming from rumours of fresh Canadian sales being made to China, but confirmation from exporters was not available.
Adding to the strength displayed by canola was strong domestic crusher demand, with processors resuming higher capacity levels now that summer maintenance schedules have been completed. Favourable profit margins were also helping to generate the domestic crush pace.
The pull back in the value of the Canadian dollar was a supportive price influence for canola with continued reports of smaller than anticipated yields as the harvest continues, also helping to stimulate gains, brokers said.
Commodity fund buying of the spreads was also evident and contributed to the price gains seen in canola, traders said.
The upside in canola was restricted by the taking of profits on the way up. The declines posted by CBOT soybean and soyoil values also slowed the upside price push by canola.
Overnight declines in Malaysian palm oil and European rapeseed futures also tempered the price strength in canola.
As of 10:26 CDT, about 8,885 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:26 CDT:
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton