By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 1/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:27 CDT Thursday morning with good commercial demand and the advances in the CBOT soybean complex providing the upward price momentum, market watchers said.
Much of the commercial interest was associated with the pricing of recently conducted Japanese business, brokers said. A small improvement in crush margins also attracted some fresh domestic processor demand back into canola, traders said.
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Ongoing concerns over the size of the Canadian canola crop and the need to ration demand going forward, also helped to fuel some of the price strength.
The advances in canola were tempered by the upswing in the value of the Canadian dollar and by scale-up farmer selling. Sentiment that canola is overpriced in comparison to some of the other oilseeds, also restricted the price gains.
The volume totals seen in canola were described by market participants as disappointing, brokers said.
As of 10:27 CDT, about 2,822 canola contracts had traded. Of those contracts, spreading accounted for 882 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:27 CDT:
