By Dwayne Klassen, Commodity News Service Canada
March 19, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished Tuesday’s session mainly higher with support throughout the day coming from concerns about tight old crop supplies, market watchers said. Steady commercial demand, believed to be covering domestic crusher needs as well as both old and new business for export outlets helped to push values up.
The downswing in the value of the Canadian dollar was said to have helped stimulate some of the demand, brokers said.
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The absence of significant farmer deliveries of canola into the cash pipeline contributed to the price strength.
Some light speculative and commodity fund buying was evident throughout the session and helped to encourage the price advances, traders said.
The upside in canola was tempered by the taking of profits at the highs of the day. The advancing harvest of a record sized soybean crop in South America and the increased supply of cheap soybeans on the global market further restricted the upside in canola.
The weakness displayed by CBOT soybean and soyoil futures also limited the upside price potential in canola.
There were an estimated 13,523 canola contracts traded Tuesday, down from the 12,332 contracts that changed hands during the previous session.
No milling wheat, durum or barley contracts were traded during the sessio.
Prices are in Canadian dollars per metric ton.
