By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 22/12 – Canola futures on the ICE Canada trading platform finished Monday’s session on a firmer footing with talk of fresh export demand and the gains in the outside oilseeds fueling the upward price action, market watchers said.
Much of the fresh export demand news came early in the day and provided some good support, traders said. Export sources, however, were unable to confirm any fresh Canadian export sales.
Some of the early strength in canola was attributed to the overnight advances posted by Malaysian palm oil and European rapeseed futures. Strength in CBOTsoybean and soyoil futures during the day Monday also influenced some of the upward action seen in canola, brokers said.
Additional gains in canola were influenced by the improvement in crush margins, which in turn helped to stimulate some fresh demand from domestic processors, traders said.
The reluctance of farmers in western Canada to deliver canola into the cash pipeline also fueled the rally in the commodity.
Some light chart related speculative and commodity fund buying interest was also evident during the session, which contributed to the price strength in canola. The minor pull-back in the value of the Canadian dollar was also an underpinning price influence.
The taking of profits at the highs of the day restricted the gains in canola.
The rolling of positions from the November future to the January contract was a feature of the activity in canola and helped to augment the volume total.
There were an estimated 22,256 canola contracts traded Monday, up from the 15,594 contracts that changed hands during the previous session. Of the contracts traded, 21,738 were spread related.
There were no milling wheat contracts traded although values were increased by ICE Canada at the close.
Barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton