|By Dwayne Klassen, Commodity News Service Canada|
|August 20, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:39 CDT Monday, with the rally in the CBOT soybean complex providing the upward price push, market watchers said.
The triggering of speculative and commodity fund buy orders on the way up helped to amplify the price advances.
Traders noted that it did not take much in the way of buying to push values up in the thin activity.
“We’re hearing that crop tours in the US are finding lower than anticipated soybean yields and that in turn has sparked some aggressive buying in Chicago and here,” a broker said.
A slowdown in the level of hedge selling by elevator companies has also generated support for canola, traders said. Some fairly heavy pre- hedging on Friday had been evident, as elevator companies prepared for increased farmer deliveries of both old crop canola and new crop canola off the combine. However, the canola harvest in both Saskatchewan and Alberta, where the bulk of the crop is located, has yet to pick up steam.
Some light commercial pricing of canola, believed to be old export business, also provided some underlying support for canola futures.
The upside in canola was being capped by the general firmness of the Canadian dollar against other foreign currencies, brokers said.
As of 10:39 CDT, about 5,581 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:39 CDT:
|Nov||615.30||up 7.00 Jan 620.50 up 8.10 Mar 621.20 up 6.90 Milling Wheat Oct 293.00 unch Dec 298.60 unch Durum Oct 299.20 unch Dec 303.70 unch Barley Oct 264.50 unch Dec 269.50 unch|
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton