By Dwayne Klassen, Commodity News Service Canada
February 1, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 08:31 CST Friday morning with steady commercial demand and spill over from the gains in the CBOT soybean complex providing the upward price momentum, market watchers said.
Demand from the domestic processing and export sector continues to be aggressive, which is drawing down the limited supply of canola that is thought to be left in western Canada, traders said. As a result, the rationing of demand has helped to push canola futures up.
Statistics Canada will release its grain stocks in all positions report on February 5, with will provide an update on what grain and oilseed supplies totalled as of December 31, 2012.
Chart-based buying by speculative and commodity fund accounts contributed to the price strength displayed by canola.
Continued worries about the weather for the development of the South American soybean crops also helped to generate some underlying support for canola.
The upside in canola was being capped by the taking of profits and by steady elevator company hedge selling, tied to good levels of farmer deliveries of canola into the cash pipeline, brokers said.
As of 08:31 CST an estimated 6,606 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:31 CST.