|By Terryn Shiells, Commodity News Service Canada|
|October 9, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 8:33 CDT Tuesday, following the gains seen in outside oilseed markets overnight, analysts said.
Canola futures missed out on the softer oilseed bias on Monday because markets were closed for Canadian Thanksgiving. Therefore, canola followed overnight oilseed trade activity Tuesday morning, traders noted.
The advances seen in the CBOT soybean complex helped canola values move to higher ground. Much of the buying that took soybeans higher was linked to bargain hunting and strong export demand, brokers said.
Strength seen in European rapeseed and Malaysian palm oil futures overnight also generated some of the upward price action in canola.
Canola futures also continued to be supported by concerns about tight supplies. Statistics Canada lowered their canola production by 2 million tonnes, to 13.4 million, last week. The expected production number is also lower than the 14.5 million tonnes in 2011.
However, the upswing in the value of the Canadian currency limited the advances. The stronger Canadian currency made canola more expensive for foreign buyers.
As of 8:33 CDT, only about 1,750 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:33 CDT:
|Nov||613.70||up 4.20 Jan 613.50 up 5.30 Mar 609.60 up 5.50 Milling Wheat Oct 289.80 unch Dec 295.00 unch Durum Oct 309.00 unch Dec 313.50 unch Barley Oct 245.00 unch Dec 250.00 unch|
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton