By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 26/12 – Canola futures on the ICE Canada trading platform finished Monday’s session with good gains with steady demand from the commercial sector behind the upward price action, market watchers said.
Some of the demand from the export sector was said to be pricing old business to Japan, traders said. However, there were also strong indications of fresh sales of Canadian canola being made, which amplified the price strength. Exporters, however, were unable to confirm any fresh business.
Early support in canola had been derived from the gains posted by CBOt soybean and soyoil futures. Strength overnight in European rapeseed futures had also influenced some early buying in canola.
Adding to the bullish sentiment in canola was the continued reluctance of farmers to deliver canola into the cash pipeline in western Canada, traders said.
The buying back of previously sold positions also contributed to some of the price strength seen in canola.
The upside in canola was tempered by the paring of the advances experienced by CBOT soybeans ahead of the close, brokers said.
The taking of profits at the highs of the day further limited the gains seen in canola.
The small downswing in the value of the Canadian dollar during the session also provided some minor support.
There were an estimated 14,876 canola contracts traded Monday, up from the 13,692 contracts that changed hands during the previous session. Of the contracts that changed hands, 8,170 were spread related.
Milling wheat and durum futures were untraded and unchanged.
Barley futures, meanwhile, were lowered with commercials looking to unload December positions ahead of those contracts becoming a cash delivery month, brokers said.
Prices are in Canadian dollars per metric ton.