By Dwayne Klassen, Commodity News Service Canada
Winnipeg – August 30/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:36 CDT Thursday morning. Increased demand from domestic processors helped to fuel the advances seen in canola with a slow down in the level of canola deliveries by farmers into the cash pipeline adding to the bullish price tone, market watchers said.
“There was some pretty aggressive buy orders in the market today from the domestic crushers, which generated the price gains,” a trader said.
Elevator companies were also wanting the canola movement to remain at a high pace in order to cover the record export program that is in place for the September through November time frame, a broker commented. That demand was helping to generate support for canola.
Additional strength in canola stemmed from the overnight advances posted by Malaysian palm oil and European rapeseed futures. The advances seen in CBOT soybean futures also contributed to the upward price action seen in canola, traders said.
Some support in canola was also stemming from the smaller than anticipated yield results from the advancing canola harvest on the Canadian prairies, brokers said. A downturn in the value of the Canadian dollar Thursday morning was also viewed as supportive.
The taking of profits at the highs of the day and the losses experienced by CBOT soyoil futures were capping the upside in canola, brokers said.
As of 10:36 CDT, about 5,354 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:36 CDT:
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton