|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 18, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:43 CDT Thursday, as gains in CBOT soybeans provided some spillover support.
Commercials and fund traders were both on the buy side in canola, according to a commission house broker. He said the tightening supply situation in western Canada was behind some of the exporter and domestic crusher demand.
Meanwhile, improving technical signals had speculative fund traders looking to rebuild their long positions in canola, the broker added.
On the other side, the move above C$610 per tonne in the most active January canola contract did encourage some farmer selling, which slowed the advances, said the broker.
Relatively favourable South American crop conditions and ideas that canola is looking overpriced compared to other oilseed markets also put some pressure on the Canadian futures, according to participants.
At 10:43 CDT, about 9,200 canola contracts had changed hands. Intermonth spreading was a feature, accounting for the bulk of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:43 CDT:Price Change
Canola Nov 613.30 up 8.20
Jan 612.80 up 8.40
Mar 611.00 up 8.90
Milling Wheat Dec 298.90 unch
Mar 308.40 unch
Durum Dec 312.40 unch
Mar 319.00 unch
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton