|By Terryn Shiells, Commodity News Service Canada|
|July 31, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels at 10:37 CDT Tuesday, bouncing back from losses seen in early morning trade.
A strong combination of commercial and speculative buying helped move canola values to the upside, traders said.
Canola values were strong despite two-sided trade in the US markets, including the CBOT soybean complex, industry watchers said.
“Volume is a little bit on the skinny side, but if you need to own it you’ve actually got to take the market up to find it and that’s certainly giving us some support today,” a broker said.
Advances in the CBOT soybean complex, fuelled by drought conditions in the US Midwest, were also responsible for some of the upward price action seen in canola.
However, generally good conditions for the development of canola and the advancement of the harvest in some areas across the Canadian prairies restricted the advances.
Declines seen in Malaysian palm oil and European rapeseed overnight also limited canola’s potential to move higher.
Spread activity was “wacky” and on the lighter side at midday Tuesday, participants said. As of 10:37 CDT, about 7,550 canola contracts had traded.
Durum, barley and milling wheat were untraded and unchanged.
|Nov||625.00||up 1.40 Jan 627.00 up 0.70 Mar 627.80 up 0.30 Milling Wheat Oct 327.50 unch Dec 335.00 unch Durum Oct 330.40 unch Dec 334.90 unch Barley Oct 264.50 unch Dec 269.50 unch|
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton