|By Terryn Shiells, Commodity News Service Canada|
|September 25, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at stronger price levels at 8:27 CDT, as recent losses were seen as overdone and in need of an upward correction, analysts said.
Canola was also supported by the advances seen in the CBOT soybean complex. Much of the strength in CBOT soybeans was linked to a technical correction to the upside and a jump in end user buying, traders said.
Gains seen in Malaysian palm oil and European rapeseed futures during overnight trade also added to the bullish price sentiment in canola.
Concerns that Canadian canola supplies will be very tight and the need to ration demand also generated some of the price strength. Some participants think production will be much lower than Statistics Canada’s August 22 estimate of 15.4 million tonnes.
Slow farmer selling, as they wait for higher prices, was also responsible for some of the upward price climb.
However, the upswing in the value of the Canadian dollar limited the advances. The stronger Canadian currency makes canola more expensive for foreign buyers.
Improving conditions for the planting of soybeans in South America also tempered the gains in canola, participants said.
As of 8:27 CDT, about 615 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:27 CDT:
|Nov||615.00||up 3.60 Jan 618.50 up 3.60 Mar 618.10 up 3.80 Milling Wheat Oct 301.50 unch Dec 306.70 unch Durum Oct 311.90 unch Dec 316.40 unch Barley Oct 250.30 unch Dec 255.30 unch|
Futures Prices as of June 19, 2013
Prices are in Canadian dollars per metric ton