By Dwayne Klassen, Commodity News Service Canada Inc
Winnipeg – July 13/12 – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday Friday. Much of the strength in canola was linked to the rally experienced by CBOT soybean and soyoil values, market watchers said.
Gains overnight in Malaysian palm oil and European rapeseed futures also encouraged the price advances seen in canola.
Gains in canola were also tied to steady buying interest from commodity fund accounts, traders said.
The weather issues in the US soybean belt were also adding to the bullish sentiment in canola.
The pricing of old export business to Japan was supportive for canola, brokers said. There were also indications of fresh Chinese interest in Canadian canola, but no sales could be confirmed.
The upside in canola was being restricted by steady elevator company hedge selling, as farmers in western Canada take advantage of recent strong cash bids and have been busy delivering canola into the cash pipeline, brokers said.
The taking of profits at the highs of the day also tempered the strength in canola. Firmness in the Canadian dollar was also an undermining price influence.
There were an estimated 7,846 canola contracts traded at 10:52 CDT.
There were no milling wheat, barley or durum contracts traded at 10:52 CDT.
Prices in Canadian dollars per metric ton at 10:52 CDT:
Futures Prices as of May 22, 2013
Prices are in Canadian dollars per metric ton