By Dwayne Klassen, Commodity News Service Canada
March 6, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at firmer price levels at 10:56 CST Wednesday morning with some of the upward price momentum associated with the continued downswing in the value of the Canadian dollar, market watchers said.
The weak currency continues to stimulate demand for canola from both the domestic and export sectors, traders said.
With end-user demand remaining strong, supplies of canola continue to tighten, which also spurred some buying interest in the commodity.
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Chart-based demand from speculative and commodity funds further underpinned canola futures.
The upside in canola was restricted by the downturn in some CBOT soybean and soyoil contracts. The taking of profits and steady farmer deliveries of canola into the cash pipeline in western Canada also capped the upside price potential, brokers said. A lot of the farmer movement reflected strong cash bids being offered by grain companies.
Activity in canola was described as choppy, with participants trying to even up positions ahead of new supply/demand reports that are scheduled to be released by the USDA on Friday.
Spreading was a small feature of the activity in canola.
As of 10:56 CST, about 9,356 canola contracts had traded. Of those contracts, spreading accounted for 4,514 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:56 CST:
