By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 26/12 – Canola futures on the ICE Canada trading platform finished Friday’s session with advances. Steady commercial demand and the downswing in the value of the Canadian dollar encouraged the upward price action, market watchers said.
Much of the commercial interest was said to be the pricing of both old and new export business. The covering of domestic processor needs was also linked to some of that demand. Much of the demand was linked to the tighter than anticipated supply outlook for canola in Canada. Canadian canola ending stocks at the termination of the 2012/13 (Aug/Jul) crop year have been estimated by Agriculture Canada at a very small 450,000 tonnes.
Chart-based speculative and commodity fund buying also helped to keep a firm floor under canola throughout the session, traders said.
Farmer deliveries of canola into the cash pipeline also remain on the light side, which further underpinned values.
The upside in canola was restricted throughout the day by the taking of profits by a variety of market participants, brokers said. The weakness displayed by CBOT soybean and soyoil futures also restricted the upside seen in canola.
Continued calls for record sized soybean production in South America also tempered the price advances in canola.
The rolling of positions from the November future to the January contract was a feature of the trade in canola and helped to augment the volume total.
There were an estimated 20,498 canola contracts traded Friday, up from the 17,574 contracts that changed hands during the previous session. Of the contracts traded, 14,936 were spread related.
Milling wheat, barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
Futures Prices as of May 22, 2013
Prices are in Canadian dollars per metric ton