By Dwayne Klassen, Commodity News Service Canada
January 22, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished on a firmer footing Tuesday with the advances in the outside oilseed markets behind much of the upward price push, industry watchers said.
Spreading was again a big feature of the activity in canola and contributed to much of the volume total.
Overnight advances in Malaysian palm oil and European rapeseed futures sparked some of the early buying in canola. The advances posted by CBOT soybean and soyoil futures further contributed to the upward price action, traders said.
Some of the buying that took soybeans, and subsequently canola higher, involved the dry weather which was threatening soybean production in parts of South America, brokers said.
The gains in canola were also helped along by steady domestic crusher demand and the pricing of old export business. Some chart-based speculative and commodity fund buying further bolstered canola, especially as a key technical resistance level in the nearby March canola future was penetrated, traders said.
The buying back of previously sold positions was also evident and contributed to some of the price strength in canola.
The upside in canola was restricted by the taking of profits at the highs of the day. Steady elevator company hedge selling, tied in part to steady farmer deliveries of canola into the cash pipeline in western Canada also tempered the upward price move, brokers said.
There were an estimated 35,622 canola contracts traded Tuesday, up from the 9,360 contracts that changed hands during the previous session. Of the contracts that changed hands, 23,772 were spread related.
No milling wheat, durum or barley contracts were traded.
Prices are in Canadian dollars per metric ton.
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton