By Dwayne Klassen, Commodity News Service Canada
Winnipeg – September 12/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:26 CDT Wednesday morning. Tighter than anticipated supplies of soybeans in the US as reported by the USDA helped to send canola futures to higher ground, market watchers said.
The rally experienced by CBOT soybean and soyoil values contributed to the price gains in canola with overnight advances in Malaysian palm oil also adding to the support.
Strong Japanese pricing of Canadian canola helped to fuel the upside with steady domestic crusher demand further stimulating the upward price action, traders said.
A slow down in the level of canola being delivered by farmers into the cash pipeline in western Canada also underpinned values, brokers said.
The triggering of buy-stop orders on the way up helped to exaggerate the price advances in canola.
The upside in canola was trimmed by the taking of profits at the highs of the day. The generally strong Canadian dollar and the advancing harvest operations across western Canada also restricted some of the price strength.
Spreading was a minor feature of the activity seen in canola.
As of 10:26 CDT, about 5,262 canola contracts had traded. Of the contracts traded, 864 were spread related.
Milling wheat and durum were untraded and unchanged. There were 15 barley contracts traded at weaker price levels.
Prices in Canadian dollars per metric ton at 10:26 CDT:
Futures Prices as of June 18, 2013
Prices are in Canadian dollars per metric ton