ICE Canola Ends Higher, Tight nearby Supplies Bolster Values

By Dwayne Klassen, Commodity News Service Canada

Winnipeg – December 28/12 – Canola futures on the ICE Canada trading platform finished with significant advances Friday with much of the buying concentrated in the nearby months. Talk of extremely tight nearby supplies helped to fuel the upward price push, market watchers said.

Commercial elevators were said to be paying premiums to entice farmers to deliver canola into the cash pipeline in western Canada. Tha premiums being paid were said to vary and were dependent on the region of the Canadian prairies, traders said. Much of that interest was said to be covering export commitments as well as domestic crusher needs.

The penetration of key technical resistance further encouraged the price advances in canola. Adding to the support in canola were the overnight advances posted by Malaysian palm oil and European rapeseed futures. The gains in CBOT soyoil futures also provided some of the upward price momentum.

The downswing in the value of the Canadian dollar helped to underpin values as did the buying back of previously sold positions by a variety of market participants, brokers said.

The triggering of buy-stops on the way up helped to amplify the price gains seen in canola. The gains in canola was restricted by the taking of late day profits, traders said.

There were an estimated 20,601 canola contracts traded Friday, down from the 29,785 contracts that changed hands during the previous session. Of the contracts that changed hands, 16,516 were spread related.

No milling wheat, durum or barley contracts were traded. Prices are in Canadian dollars per metric ton.

Commodity futures

Futures Prices as of April 17, 2014

Canola Price Change
January605.2013.90
March596.5011.00
May591.5010.30
Milling Wheat Price Change
March290.50
May293.50
Durum Price Change
March312.40
May316.40
New Barley Price Change
March247.00
May248.00

Prices are in Canadian dollars per metric ton

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