|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 16, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:50 CDT Tuesday, seeing a corrective bounce from Monday’s declines.
Advances in the CBOT soy complex accounted for some of the spillover buying interest in canola, according to a broker. The weaker tone in the Canadian dollar, which was down by about half a cent relative to its US counterpart, was also supportive.
Speculative short-covering and end-user pricing were both behind the buying interest in canola, said a broker. The tightening supply situation in western Canada was keeping exporters and domestic crushers showing good demand.
On the other side, farmer selling and commercial hedges did temper the gains to some extent. While Canadian producers are still generally said to be holding out for higher prices, the recent losses likely undercut some expectations for further gains.
Relatively good weather conditions for the South American soybean growing regions were also limiting the advances in the North American oilseeds.
At 10:50 CDT, about 13,000 canola contracts had changed hands. Intermonth spreading was a feature, as participants continue to roll out of the nearby November contract.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:Price Change
Canola Nov 606.30 up 9.60
Jan 605.30 up 9.60
Mar 602.50 up 9.00
Milling Wheat Dec 297.40 unch
Mar 306.90 unch
Durum Dec 312.40 unch
Mar 319.00 unch
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton