|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 19, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:55 CDT Wednesday, as speculators and commercials were both noted buyers.
Yield projections continue to deteriorate across parts of western Canada as farmers move forward with their harvest operations. Demand will need to be rationed heading through the crop year, which helped support canola, according to a broker.
Gains in CBOT soybeans did provide spillover support for canola as well, although traders noted that canola had already moved higher on Tuesday when soybeans had traded at softer levels. As a result, the advances in canola were somewhat subdued.
Steady farmer deliveries did temper the gains in canola as well, according to participants. However, farmers were reluctant to make any new sales as they contemplate the likelihood of smaller crops, a broker added.
The strength in the Canadian dollar did remain a bearish price influence overhanging the canola market. The potential for a large South American soybean crop to resupply the global oilseed market also limited the upside potential.
At 10:55 CDT, about 4,200 canola contracts had changed hands.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:55 CDT:Price Change
Canola Nov 633.40 up 7.00
Jan 637.10 up 6.90
Mar 637.70 up 6.30
Milling Wheat Oct 292.20 unch
Dec 298.00 unch
Durum Oct 310.10 unch
Dec 314.60 unch
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton