By Dwayne Klassen, Commodity News Service Canada
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 09:10 EDT
Friday morning. Long term weather outlooks released for the main growing areas of the US, calling for little relief from the hot and dry conditions, helped to encourage the buying that took canola futures higher, market watchers said.
The resulting advances in CBOT soybean and soyoil values, along with European rapeseed futures overnight contributed to the price strength in canola, brokers said.
Adding to the upward price momentum in canola was light commercial demand, said to be pricing routine export business to Japan. Light speculative and commodity fund demand was also evident and aided the price rally.
A small pull back in the value of the Canadian dollar Friday morning also provided some underlying support.
The upside in canola was tempered by a drop off in domestic crusher demand and the steady flow of canola being delivered by farmers into the cash pipeline in western Canada, traders said.
The mostly favourable weather conditions for the development of the canola crop on the Canadian prairies also restricted some of the price strength, brokers said.
As of 9:10 EDT, there were 2,749 canola contracts traded.
As of 9:10 EDT, there were no milling wheat, durum or barley contracts traded.
Prices in Canadian dollars per metric ton at 9:10 EDT:
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton