|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:31 CDT Tuesday, as increased commercial buying brought values to the upside, brokers said.
Japan was a noted buyer of Canadian canola at midday Tuesday, as they took advantage of lower prices following Monday’s sharp declines.
Strong buying by domestic crushers and a slowdown of farmer deliveries into the cash pipeline also fuelled some of the advances in canola, industry officials said.
Reports of smaller than expected yields from Canadian farmers as the canola harvest progresses also added to the bullish price sentiment.
Canola also moved higher as it corrected its spread with CBOT soybeans. Normally canola trades at a premium above soybeans, but has lagged behind the oilseed recently.
However, weakness in outside oilseed markets, including the CBOT soybean complex and European rapeseed futures limited the advances, traders said.
As of 10:31 CDT, about 7,860 canola contracts had traded. There were 10 barley contracts traded at unchanged price levels.
Milling wheat and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:31 CDT: