|By Terryn Shiells, Commodity News Service Canada|
|September 19, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 8:36 CDT Wednesday, following the gains seen in the CBOT soybean complex, analysts said.
Much of the strength in the CBOT soybean complex was linked to bargain buying by a variety of market players following recent sharp declines, traders said.
Concerns that long-term soybean supplies are going to be very tight also fuelled some of the advances, which spilled over to support canola.
Advances seen in European rapeseed futures also generated some of the price firmness, brokers said.
Sentiment that recent declines were overdone and in need of correction to the upside also helped canola move to higher ground, participants said.
Worries that Canadian canola supplies will be tight also added to the bullish price sentiment. Western Canadian farmers have been reporting lower than expected yields, which has some participants thinking production will be much lower than the 15.4 million tonnes Statistics Canada estimated last month.
However, firmness in the value of the Canadian dollar limited the advances. A stronger Canadian dollar makes canola more expensive for foreign buyers.
As of 8:36 CDT, about 1,055 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:36 CDT:
|Nov||634.50||up 8.10 Jan 638.40 up 8.20 Mar 640.00 up 8.60 Milling Wheat Oct 292.20 unch Dec 298.00 unch Durum Oct 310.10 unch Dec 314.60 unch Barley Oct 250.30 unch Dec 255.30 unch|
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton