|By Terryn Shiells, Commodity News Service Canada|
|August 23, 2012|
|WINNIPEG – Canola futures on the ICE Futures Canada platform were trading at stronger price levels at 8:36 CDT, following the strength seen in the CBOT soybean complex, analysts said.
Much of the upward price action seen in the CBOT soybean complex was generated by the reduced yield potential in the US Midwest, market watchers said.
Expectations that global soybean supplies will be tight amidst strong demand were also supportive for both CBOT soybeans and canola, brokers said.
Canola also found support from lower than expected production numbers released by Statistics Canada on Wednesday. Canola production is expected to be about 15.4 million tons in 2012/13 (Aug/Jul), which compares to pre-report expectations of 15.5 to 17 million tons.
Steady domestic crusher demand and the slowing of farmer deliveries into the cash pipeline also helped canola move to the upside, traders said.
The downswing in the value of the Canadian dollar was also supportive for canola as it made the commodity more attractive to foreign buyers.
However, weakness in Malaysian palm oil and European rapeseed futures during overnight trade tempered the advances.
Profit-taking after recent highs was also an undermining price influence in canola, participants said.
As of 8:36 CDT, about 2,965 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
|Nov||635.10||up 1.90 Jan 639.20 up 2.20 Mar 638.00 unch Milling Wheat Oct 296.70 unch Dec 303.70 unch Durum Oct 301.10 unch Dec 305.60 unch Barley Oct 264.50 unch Dec 269.50 unch|
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton