By Dwayne Klassen, Commodity News Service Canada
January 30, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 08:39 CST Wednesday morning with the strength being displayed by the CBOT soybean complex providing much of the upward momentum, market watchers said.
Much of those advances were tied to the dry weather forecast for the soybean growing regions of Argentina and southern Brazil through to the weekend.
Adding to the upward price action in canola were the advances posted overnight in Malaysian palm oil and European rapeseed futures, brokers said.
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Canola also continued to find support from the need to ration demand, with usage continuing to tighten canola supplies in Canada, traders said.
Some chart-based buying by commodity funds and speculative accounts also contributed to the gains seen in canola. The downturn in the value of the Canadian dollar early Wednesday also offered some minor support.
The taking of profits on the way up helped to slow the price advances as did steady farmer deliveries of canola into the cash pipeline, traders said.
As of 08:39 CST an estimated 2,785 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:39 CST.
