By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 29/12 – Canola futures on the ICE Canada trading platform finished Thursday session on a firmer footing with the buying back of previously sold positions by commodity fund accounts ahead of month end providing some of the upward price momentum, market watchers said.
The slow pace of farmer deliveries of canola into the cash pipeline in western Canada amid steady commercial demand, further underpinned canola futures, brokers said.
Much of the commercial interest was said to be covering old export business to Japan, but there was speculation that some fresh sales were being put on the books, traders said. The commercial interest was also said to be covering domestic crusher needs.
Continued concerns about the tight canola supply in Canada also contributed to some of the price strength seen in the commodity. Statistics Canada will release a production survey on December 5, 2012.
Some of the upward price action seen in canola also was encouraged by reports of seeding delays in the soybean growing regions of Argentina. Chart-based buying was also an underpinning influence for canola.
The upside price potential was restricted by the taking of profits and by the declines experienced by CBOT soyoil futures, brokers said.
There were an estimated 13,890 canola contracts traded Thursday, down from the 15,622 contracts that changed hands during the previous session. Of the contracts that changed hands, 9,824 were spread related.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices are in Canadian dollars per metric ton.