By Dwayne Klassen, Commodity News Service Canada
Winnipeg – August 29/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:34 CDT Wednesday morning. The early advances in CBOT soybean futures provided some strength, but when the gains in those values were extended, the upside in canola was amplified, market watchers said.
Some early strength in canola was also associated with the advances posted by European rapeseed values overnight.
Steady domestic crusher demand helped to fuel the upside in canola with the pricing of old export business by commercials also generating gains, brokers said.
Sentiment that canola was undervalued in comparison to CBOT soybeans, also fueled some of the upward price action, traders said.
The triggering of buy-stops on the way up also helped to push canola futures higher. Talk of lower than anticipated yield results, as the harvest of canola on the Canadian prairies continues, further underpinned prices, brokers said.
The upside in canola was capped by elevator company hedge selling, which came in anticipation of increased farmer deliveries of the commodity during September.
The continued firmness of the Canadian dollar against other foreign currencies also hampered the price advances in canola, brokers said.
As of 10:34 CDT, about 3,715 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:34 CDT:
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton