By Dwayne Klassen, Commodity News Service Canada
January 22, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:32 CST Tuesday morning with much of the upward price action associated with the strength experienced in the outside oilseed markets, industry watchers said.
CBOT soybean and soyoil futures were posting good gains and some of the speculative and commodity buying that has surfaced in canola came in response to those advances, traders said. Gains overnight in Malaysian palm oil and European rapeseed futures also sparked some of the upward price action.
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Dry weather conditions in some of the South American soybean growing regions helped to encourage the price strength in canola, brokers said.
Additional support in canola came from friendly chart signals, with the nearby March canola future moving above some key technical resistance.
Steady domestic crusher demand and the pricing of old export business further lifted canola futures.
The upside in canola was capped by the taking of profits as well as by a pick up in elevator company hedge selling. That selling was spurred on by an increase in farmer deliveries of canola into the cash pipeline in western Canada.
Spreading was a key feature of the activity in canola and accounted for the bulk of the volume total.
As of 10:32 CST, about 18,123 canola contracts had traded. Of those contracts, spreading accounted for 14,328 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:32 CST:
