By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 13/12 – Canola futures on the ICE Canada trading platform finished Thursday’s session on a firmer footing with much of the upward price action associated with sentiment that values were oversold and in need of a correction to the upside, market watchers said.
Additional support in canola came from speculation that the recent price weakness in canola uncovered some fresh export demand. Confirmation of fresh business, however, was not available.
Concerns about canola supply tightness, as the industry continues to adjust to the recent lower than anticipated production estimate from Statistics Canada, also helped to keep a firm floor under values, brokers said.
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The slow pace of farmer deliveries into the cash pipeline in western Canada contributed to the firm price floor in canola. Farmers were seen as unwilling sellers until the new tax year begins, brokers said.
Steady demand from commercials, said to be covering domestic processor needs, also provided some light support.
The upside in canola was restricted by the declines seen in CBOT soyoil futures. The taking of profits at the highs of the day further limited the upside price potential.
The generally favourable weather for the development of the South American soybean crop also kept the push to higher ground in check, brokers said.
There were an estimated 18,836 canola contracts traded Thursday, up from the 15,566 contracts that changed hands during the previous session. Of the contracts that changed hands, 14,786 were spread related.
No milling wheat, durum wheat or barley contracts were traded.
Prices are in Canadian dollars per metric ton.
