|WINNIPEG – Canola futures on the ICE Futures Canada platform were trading at higher price levels at 8:36 CDT Tuesday, following the advances seen in the CBOT soybean complex, analysts said.
Concerns about tight global soybean supplies provided much of the support in the CBOT soybean complex, market watchers said. The need to ration demand also fuelled some of the advances.
Strength seen in European rapeseed during overnight trade also added to the price gains seen in canola, industry officials said.
Steady domestic crusher demand and the pricing of old export business also added to the bullish price sentiment in canola.
The slowdown in farmer deliveries into the cash pipeline was also responsible for some of the upward price action seen in canola.
Reports of smaller than anticipated yields by some western Canadian farmers also helped canola move to the upside, analysts said.
However, the upswing in the value of the Canadian dollar and profit-taking after recent highs limited the advances, brokers said.
Losses seen in Malaysian palm oil futures during overnight trade also tempered the gains, traders said.
As of 8:36 CDT, about 1,965 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:36 CDT: