|WINNIPEG – Canola futures on the ICE Futures Canada platform were trading at stronger price levels at 8:31 CDT Monday, following the advances in the CBOT soybean complex, market watchers said.
Much of the strength in the CBOT soybean complex was generated by strong demand for the oilseed and the tight global soybean supply situation, brokers said.
Advances seen in Malaysian palm oil and European rapeseed during overnight trade also helped canola move to the upside, traders said.
Smaller than expected Canadian canola production numbers, as reported by Statistics Canada last week, also continued to be supportive for canola. Canadian canola production was pegged at 15.4 million tonnes for the 2012/13 (Aug/Jul) crop year, about a million less than the trade was expecting.
However, firmness in the Canadian dollar, as it remained above parity with its US counterpart, limited the advances. The stronger Canadian dollar caused canola to become more expensive for foreign buyers.
Expectations that farmer deliveries into the cash pipeline will start to pick up steam again also tempered the gains in canola, analysts said.
Generally good conditions for the advancement of the canola harvest in Canada also undermined values, participants said.
Activity was very light Monday morning. As of 8:31 CDT, about 480 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:31 CDT: