By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 14/12 – Canola futures on the ICE Canada trading platform ended Wednesday’s session on a firmer footing with sentiment that values were due for a correction to the upside after recent sharp declines behind much of the price strength, market watchers said.
The upward price movement in canola was also linked to the advances experienced in CBOT soybean and soyoil futures. Gains overnight in Malaysian palm oil also generated some early support for canola, traders said.
The buying back of previously sold positions by speculative and commodity fund accounts helped to underpin canola futures with the slow pace of farmer deliveries into the cash market also providing a firm floor for values.
Steady commercial demand, believed to be covering both old export business and domestic processor needs, added to the friendly price tone in canola, brokers said.
The general weakness of the Canadian dollar was also an underpinning price influence for canola.
The upside in canola was restricted by the taking of profits at the highs of the day. Bearish chart signals and the favourable weather for the development of the record sized South American soybean crop also capped the upside price potential.
There were an estimated 14,566 canola contracts traded Wednesday, down from the 16,966 contracts that changed hands during the previous session. Of the contracts that changed hands, 9,182 were spread related.
Milling wheat, barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton