By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 23/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading in a narrowly mixed range in early Friday morning activity. Participants were unwilling to push values in either direction and were waiting for CBOT grain and soybean futures to begin trading at 09:30 CST. The CBOT was closed on Thursday for the US Thanksgiving holiday and will have an abbreviated session Friday.
The higher calls for CBOT soybean and soyoil futures were helping to keep a firm floor under canola, brokers said. Gains overnight in European rapeseed were also seen as supportive but declines in Malaysian palm oil were seen restricting the upside in canola.
The absence of farmer selling as they hold out for firmer prices, was generating support for canola futures. Concerns about tight canola supplies in Canada also influenced some price strength.
Commercial pricing of old export business to Japan was also providing a firm price floor for the commodity, traders said.
The upside was tempered by the favourable weather conditions for the development of the soybean crops in Brazil and Argentina. Bearish chart signals were also keeping some canola contracts on the defensive, brokers said.
There were also concerns that speculative and commodity fund accounts will bail out of positions ahead of the weekend. That selling was expected to weigh on canola heading into the late stages of the trading day.
As of 8:54 CST, about 2,518 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:54 CST: