By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 24/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at
10:22 CDT Wednesday morning with some of the upward price action associated with steady demand from the export sector, market watchers said.
Reports that three vessels of Canadian canola have been sold to China recently, encouraged the price advances, traders said. There was also speculation that additional sales may be in the works.
The strength in canola was helped along by the overnight advances posted in Malaysian palm oil and European rapeseed futures. Gains in CBOT soybean and soyoil futures were also providing some support for canola.
The absence of willing sellers were also helping to generate the gains in canola.
“It’s taking quite a lot to coax participants to sell, especially farmers,” a broker said.
Chart based commodity fund buying was also helping to stimulate the price gains in canola.
The upside in canola was restricted in part by the taking of profits at the highs of the day.
The volumes in canola continued to be augmented by spreading, with commercials and commodity funds seen rolling positions out of the nearby November future and into the January contract.
As of 10:22 CDT, about 7,887 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:22 CDT:
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton