|By Dwayne Klassen, Commodity News Service Canada|
|August 20, 2012|
|WINNIPEG – Canola futures on the ICE Canada trading platform ended Monday’s session with significant advances with much of the strength associated with the rally experienced by CBOT soybean and soyoil values, market watchers said.
News that crop tour scouts in the US have found that soybean yields will be much poorer than anticipated, also generated good support for canola, brokers said.
A drop off in elevator company hedge selling, which had been tied to sentiment that farmer deliveries of old crop canola and new crop canola off the combine would increase, also helped to fuel the upward price momentum.
The triggering of buy-stop orders on the way up amplified the price gains, brokers said.
Additional support in canola came from light chart-based speculative and commodity fund buying. The pricing of old export business by commercials also encouraged some of the strength in canola.
The upside in canola was restricted by the taking of profits at the highs of the day. General firmness in the value of the Canadian dollar against other foreign currencies, also capped some of the upside price potential.
The quick development of canola crops across western Canada amid favourable weather conditions and sentiment that the August 22 crop production survey from Statistics Canada will show record sized canola output in Canada, further tempered the price gains, traders said.
There were an estimated 11,007 canola contracts traded Monday, up from the 5,184 contracts that changed hands during the previous session.
There were no milling wheat contracts traded Monday but values were raised by ICE Canada. No durum or barley contracts traded.
Prices are in Canadian dollars per metric ton.
|Nov||621.40||up 13.30 Jan 626.10 up 13.70 Mar 627.70 up 13.40 Milling Wheat Oct 294.70 up 1.70 Dec 300.30 up 1.70 Durum Oct 299.20 unch Dec 303.70 unch Barley Oct 264.50 unch Dec 269.50 unch|
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton