ICE Canola Futures Climb On Outside Markets

By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels a 9:07 EST. Gains in the outside markets overnight helped to influence some of the price strength in canola, industry watchers said.

Followthrough buying from the late upward push in canola prices from Tuesday also carried over to this morning, brokers said.

Gains overnight in e-CBOT soybean futures and the higher calls for CBOT soybean values with the start of the North American day session added to the friendly price tone, traders said.

`A slow down in the level of canola being delivered into the country elevator system also provided some support for canola.

Steady commercial demand, believed to be covering old export business, also was influencing some of the price strength in canola.

The upside in canola was being restricted by the upswing in the value of the Canadian dollar, with the currency again pushing towards parity with the US unit.

Reduced domestic demand, with the firming Canadian dollar cutting into the profit margins for processors, helping to temper the price advances.

As of 9:07 EST, there were 829 canola contracts traded.

As of 9:07 EST, no western barley, milling wheat, durum or barley contracts had been traded.

Prices in Canadian dollars per metric ton at 9:07 EST: