By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 28/12 – Canola futures on the ICE Canada trading platform ended Wednesday’s session mixed with the three nearby months uip and the remainder down. Good commercial demand and the reluctance of farmers to deliver the commodity into the cash pipeline in western Canada was associated with some of the strength, market watchers said.
Much of the commercial interest was said to be covering old export business to Japan as well as needs from the domestic oilseed processing sector.
Some early strength in canola came from sentiment that canola had room to move to the upside as it had lagged behind the recent rally seen in CBOT soybean values, brokers said.
Some chart-based buying from speculative and commodity fund accounts was also evident during the day which helped to underpin prices.
The advances experienced by canola were trimmed heading into the close as both CBOT soybean and soyoil futures began to expand their losses, traders said.
The taking of profits at the highs of the day further eroded the upside seen in canola earlier in the day. Firmness in the Canadian dollar was also viewed as an undermining price influence.
The improved weather conditions for the soybean crops in Brazil also tempered the upside in canola, brokers said.
There were an estimated 15,622 canola contracts traded Wednesday, up from the 12,534 contracts that changed hands during the previous session. Of the contracts that changed hands, 10,668 were spread related.
No milling wheat contracts were traded but values were raised at the close by ICE Canada.
Durum and barley futures were untraded and unchanged.
Prices are in Canadian dollars per metric ton.