By Dwayne Klassen, Commodity News Service Canada
January 14, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were posting good gains 08:24 CST Monday morning with strength in the outside oilseed markets providing much of the upward price momentum, industry watchers said.
CBOT soybean and soyoil futures were enjoying a significant post USDA report rally with Malaysian palm oil and European rapeseed futures also experiencing some good gains in overnight activity, brokers said.
Chart based buying by speculative and commodity fund accounts helped to fuel the price advances seen in canola.
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Concerns about tight canola ending stocks contributed to the price gains with the latest Canadian Grain Commission statistics confirming that usage of the commodity by the export and domestic sector continues to run at record levels.
A drop off in farmer deliveries of canola into the cash market was also an underpinning price influence.
The upside in canola was being tempered the taking of profits at the highs and by the record South American soybean crop that is currently being grown.
As of 08:24 CST an estimated 1,197 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:24 CST.
