By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 18/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher levels in light, choppy early morning trade. Spill over buying from the advances seen overnight and early Thursday morning in CBOT soybean and soyoil values helped to encourage the advances in canola, market watchers said.
Gains overnight in European rapeseed and Malaysian palm oil futures added to the upward price momentum seen in canola.
Some light exporter pricing of old business and a pick up in domestic crusher demand also influenced some of the price gains experienced by canola.
The buying back of previously sold positions was also evident and helped to influence some of the upward price action, brokers said.
The upside in canola was capped by bouts of profit-taking at the highs. Sentiment that canola was becoming overpriced in comparison to the outside oilseed markets, also restricted some of the price gains.
The Canadian dollar was trading at a weaker level early Thursday but was considered strong as it has moved above the 102 US cent level.
Light elevator company hedge selling, tied to steady farmer deliveries of canola into the cash pipeline, also tempered the price gains, traders said.
As of 8:36 CDT, about 1,342 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:36 CDT:
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton