By Dwayne Klassen, Commodity News Service Canada
February 12, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at steady to mostly higher price levels at 8:36 CST Tuesday morning with some of the upward momentum tied to ideas that the past two sessions of declines were overdone, market watchers said.
An upturn in CBOT soybean values early Tuesday contributed to the price strength seen in canola.
Adding to the bullish sentiment in canola was the extremely tight supply situation. While demand from domestic crushers and export outlets have slowed, demand for canola continues, which was helping to keep a firm floor under canola values, brokers said.
The upside in canola was being restricted by news that Australia’s canola crop was larger than anticipated. The improved weather situation in the soybean growing areas of Argentina and Brazil were also restricting some of the upward price action in canola.
The advances in canola were also being limited by steady farmer deliveries in to the cash pipeline as cash bids from elevator companies and domestic processors continue to entice movement, brokers said.
As of 8:36 CST an estimated 1,334 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:36 CST.
Futures Prices as of December 6, 2013
Prices are in Canadian dollars per metric ton