Steady and seemingly inexhaustible crusher purchases kept canola prices firm yesterday, as it has done for weeks while many other crop commodities have been weaker.
“Canola’s been very, very steady when you look at the pressure that’s been on the (soy) beans,” said broker Ken Ball of Union Securities after the close.
“Steady, solid commercial buying has kept canola from slumping too much.”
Canola fell only slightly Wednesday, with late-session trading taking weaker prices back up to near the opening level.
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November canola futures at the ICE Canada exchange in Winnipeg fell $1.10 per tonne to $524.50 and down $1.60 to $542.70 for the March.
Canola was weakened by soft soybean prices, continuing a recent trend, with Chicago soybeans falling for their fourth straight day to $12.23 per bushel. Winter wheat, conversely, rose four the fourth time in the past five trading days.
Much of the story was due to signs that corn demand picked up whenever prices fell in the last month, but soybean exports seem weaker than expected.
Ball said many traders think the crushers are locking in the present profitable crush margin, hence the strong buy orders in the market almost every day.
As always these days, the overall tenor of the crop markets was greatly dependent on the overall commodities market, world stock markets and the world zeitgeist.
Great and continuing anxiety over the Greek debt situation was partially alleviated by news that Libyan dictator Moammar Gadhafi had been killed.
