By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 26/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels in early Monday morning activity. Much of the price strength was linked to the advances seen in CBOT soybean and soyoil futures, market watchers said.
Small advances overnight in European rapeseed futures also generated some minor support for canola.
The gains in canola futures also reflected the continued reluctance of farmers to deliver the commodity into the cash pipeline in western Canada. Light commercial demand helped to fuel some of the upside in canola.
The upside in canola, however, was being hard earned given the bearish chart picture for the commodity and the liosses in Malaysian palm oil overnight. Talk of new crop Australian canola supplies being available also tempered the demand picture for Canadian canola.
Market participants were being hesitant to push canola too far one way or the other until more is known about the South American soybean crop, brokers said.
As of 8:57 CST, about 3,146 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:57 CST:
Futures Prices as of December 12, 2013
Prices are in Canadian dollars per metric ton