ICE Canola Futures Up On Outside Oilseed Gains

By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels at 9:19 EDT. Strength in canola was linked to the gains in the outside oilseed markets and on steady commercial demand, industry watchers said.

Gains were posted overnight in e-CBOT soybeans and Malaysian palm oil which helped to stimulate some light buying in canola. Projections for a higher start in CBOT soybeans with the start of the North American day session further underpinned canola values.

Commercial demand for canola also continues to be steady which lent some additional support to the commodity. The commercial interest was said to be covering old export business as well as a pick up in domestic crusher needs, brokers said.

Activity in canola was expected to be light and choppy Friday with market participants hesitant to take on new large positions ahead of the weekend and Tuesday’s first crop planting survey scheduled to be released by Statistics Canada.

Brokers noted that actual acreage is often significantly different from the numbers given in the initial StatCan

intentions report, but the report is often a market mover. Analysts in turn were expecting that the “real” canola acreage total for 2012 will exceed whatever the agency announces in its first forecast on Tuesday.

The upside in canola was being tempered by the upturn in the value of the Canadian dollar early Friday as well as by profit-taking.

As of 9:19 EDT, there were 1,963 canola contracts traded.

As of 9:19 EDT, There were no milling wheat, western barley, durum or barley contracts traded.

Prices in Canadian dollars per metric ton at 9:19 EDT: