By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 14/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:47 CST Wednesday morning with the price strength associated with sentiment that values were oversold and in need of a correction to the upside, market watchers said.
The advances experienced overnight in Malaysian palm oil and in CBOT soybean and soyoil futures helped to encourage the price gains seen in canola, traders said.
The tight supply situation combined with the reluctance of farmers to deliver canola into the cash pipeline helped to generate some support. Light commercial demand, said to be covering old export business and some minor domestic processor needs, further lifted canola, traders said.
The buying back of previously sold positions by speculative and commodity fund accounts also played a role in keeping canola to the upside, brokers said.
Weak chart signals restricted the upside price potential in canola.
Spreading was a feature of the activity in canola and was helping to augment the volume total.
As of 10:47 CST, about 6,971 canola contracts had traded. Of those contracts, spreading accounted for 3,692 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:47 CDT: