By Dwayne Klassen, Commodity News Service Canada
January 29, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels at 08:30 CST Tuesday morning with the need to ration demand behind the price strength, market watchers said.
The Market Analysis Division of Agriculture and Agri-Food Canada overnight updated its supply/demand tables. The report kept the ending stocks forecast for Canadian canola in 2012/13 (Aug-Jul) at a very tight 350,000 tonnes. The carry-out forecast for canola in the new 2013/14 crop year was raised to 600,000 tonnes, which is still on the tight side. Canadian canola production in 2013/14 was seen rising to 15.5 million tonnes from the 13.3 million tonnes produced in 2012/13.
Additional support in canola also came from the upward price movement seen in CBOT soybean and soyoil futures. Gains overnight in Malaysian palm oil and European rapeseed futures further encouraged the price climb.
The advances in canola were being restricted by profit-taking and overhead technical resistance, brokers said. A small uptick in the value of the Canadian dollar also slowed some of the price gains seen in canola.
Elevator company hedge selling, tied to steady farmer deliveries of canola into the cash pipeline also prevented values from pushing to higher ground, brokers said.
As of 08:30 CST an estimated 2,303 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:30 CST.
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton