By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 27/12 – Canola futures on the ICE Canada trading platform finished Tuesday’s session on a firmer footing with the upward price action associated in part with steady commercial demand and the advances seen in the CBOT soybean complex, market watchers said.
Much of the commercial demand was linked to the pricing of old export business, but there continued to be indication of fresh export business coming forward for Canadian canola. Export sources were unable to confirm any fresh sales.
Chart based buying by a variety of market participants, as values pushed through technical resistance in some contract, further underpinned canola values, brokers said.
The absence of farmer deliveries of canola into the cash pipeline and the resulting firmness in the cash market helped to fuel the upside in canola, traders said.
The weather uncertainties in the soybean growing regions of Brazil and Argentina further lifted canola futures. The buying back of previously sold positions also provided canola futures with a firm floor, traders said.
The upside in canola was restricted by the taking of profits at the highs of the day and by the small upswing in the value of the Canadian dollar.
There were an estimated 12,534 canola contracts traded Tuesday, down from the 14,876 contracts that changed hands during the previous session. Of the contracts that changed hands, 5,790 were spread related.
Durum and barley futures were untraded and unchanged. No milling wheat contracts were traded but values were raised by ICE Canada at the close.
Prices are in Canadian dollars per metric ton.