By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 11/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:33 CDT Thursday morning with the strong gains in CBOT soybean and soyoil futures providing most of the upward price incentive, market watchers said.
Projections from the USDA calling for strong demand and tight US soybean stocks helped to fuel the rally seen in the CBOT soybean complex. The forecast for tight US soybean supplies helped to generate demand for canola with the crop in western Canada confirmed as coming in at a much smaller size.
Gains overnight in Malaysian palm oil and European rapeseed futures helped to generate some early support for canola, brokers said.
Adding to the support in canola was the absence of farmer deliveries into the cash pipeline and the pricing of old export business by commercial accounts.
Chart-related buying, as values climbed, also contributed to the advances experienced by canola.
The taking of profits at the highs of the day restricted the upward price movement, traders said.
A portion of the activity in canola continued to consist of spreading, with participants rolling positions out of the November canola contract and into the January future.
As of 10:33 CDT, about 8,862 canola contracts had traded. Of the contracts traded, 4,844 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:33 CDT:
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton