By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 14/12 – Canola futures on the ICE Canada trading platform ended Friday’s session on a firmer footing although the late day taking of profits trimmed the upside price potential, market watchers said.
Strength in canola was derived from the upward price action experienced by CBOT soybean and soyoil futures, traders said. Steady commercial demand amid the absence of farmer deliveries of canola into the cash pipeline in western Canada further lifted values. Commercials were said to be offering premiums for canola in select regions of the Canadian prairies in order to entice movement in the cash market.
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Much of the commercial interest was said to be the pricing of old export commitments to Japan as well as covering domestic processor needs.
Commodity fund buying, said to be trying to pop canola values through technical resistance, also helped to fuel some of the price strength.
Some minor weakness in the value of the Canadian dollar was also viewed as a minor supportive price influence.
The tight supply outlook for canola also provided values with a firm price floor to work with.
Some of the upward price action was tempered by the improved growing conditions for the soybean crops in Brazil and Argentina.
There were an estimated 22,829 canola contracts traded Friday, up from the 18,836 contracts that changed hands during the previous session. Of the contracts that changed hands, 21,460 were spread related.
No milling wheat or barley contracts were traded. No durum contracts were traded but values were lowered by ICE Canada at the close.
Prices are in Canadian dollars per metric ton.
