By Dwayne Klassen, Commodity News Service Canada
January 7, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:27 CST Monday morning. Strength in canola reflected continued strong demand amid concerns about tight supplies, market watchers said.
“Country elevators in western Canada are paying some pretty good premiums in order to entice farmers to deliver canola, and that is helpiong to keep a firm floor under values,” a commodity broker said. Some of that demand was said to be covering export commitments, but domestic processors were also looking to keep supplies up in order to follow-through on sales.
Read Also
Canadian Financial Close: C$ firm Friday
Glacier FarmMedia — The Canadian dollar strengthened Friday, as dovish comments out of the United States Federal Reserve weighed on…
There were also ideas that ending stocks of canola in Canada at the conclusion of the 2012/13 (Aug/Jul) season will be in negative territory, which also was helping to keep a firm floor under values.
Some chart based buying was also evident and helped to generate some support for canola.
Early advances in CBOT soybean and soyoil values had also encouraged some of the price advances in canola, traders said. However, when the gains in CBOT soybeans began to trail off, some of the buying in canola also eased.
The favourable weather for the development of the South American soybea crop also helped to restrict the price gains in canola.
As of 10:27 CST, about 4,204 canola contracts had traded. Of those contracts, spreading accounted for 2,972 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:27 CST
