By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 19/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels in early Monday morning activity. Some of the price strength was linked to ideas that values were due for a correction to the upside after recent sharp losses, market watchers said.
Adding to the upward price momentum in canola were the advances posted in CBOT soybean and soyoil values early Monday. Gains posted overnight in Malaysian palm oil helped to fuel some support with the small advances in European rapeseed also generating a firm floor for prices.
The need to ration Canada’s tight canola supply situation was also providing some underlying support. Farmer deliveries of canola overall, remain on the light side and were helping to providing some support.
The upside in canola is being capped by the increased supply of soybeans, especially with weather conditions in South American conducive to the planting and development of record large soybean crops.
Domestic crusher demand was also slowly dropping off, given that profit-margins are the lowest they have been in roughly four years. The chart signals for canola also continue to be bearish, which was slowing any push to the upside in the commodity.
As of 8:35 CST, about 769 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:35 CST: