By Dwayne Klassen, Commodity News Service Canada
Winnipeg – September 4/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:19 CDT Tuesday morning. New contract highs were established overnight in a number of months with steady demand and only limited farmer deliveries providing the upward momentum in canola, market watchers said.
“There has been the anticipation of heavy farmer movement of canola occurring, but it just has not happened,” a broker commented, explaining why canola futures continue to edge upwards.
Spill over from the advances in CBOT soybean and soyoil futures further enhanced the price advances experienced by canola, brokers said.
Some of the end-user demand was coming from domestic processors, as favourable margins, were encouraging the crush pace. The pricing of old export business by commercials contributed to the price strength.
Chart-related commodity fund and speculative buying interest was also providing underlying support to canola futures, traders said.
Continued concerns about smaller than anticipated yield potential from the ongoing canola harvest in western Canada also added to the bullish price sentiment.
The upside in canola was restricted by the taking of profits at the highs of the day.
As of 10:19 CDT, about 4,266 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:19 CDT:
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton