By Dwayne Klassen, Commodity News Service Canada
Winnipeg – Canola futures on the ICE Canada trading platform finished Tuesday’s session on a firmer footing with some of the upward price action linked to sentiment that values were oversold and were in need of a correction to the upside, market watchers said.
Additional strength in canola came from the buying back of previously sold positions by speculative and commodity fund accounts, brokers said.
Steady commercial demand, believed to be the covering of domestic processor needs and routine export business, further encouraged the advances.
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A small pull-b ack in the value of the Canadian dollar was seen as an underpinning price influence with the weather uncertainty for the US soybean crop also generating some strength.
The advances displayed by CBOT soybean futures added some support, but the upside was tempered by the declines seen in CBOT soyoil futures, traders said.
The upside in canola was also capped by steady farmer deliveries of the commodity into the cash pipeline. Good weather for the development of the canola crop in western Canada also
restricted some of the upward price movement, traders said.
Some evening up of positions was evident ahead of Wednesday’s latest round of supply/demand reports scheduled to be released by the USDA.
There were an estimated 21,849 canola contracts traded Tuesday, up slightly from the 21,695 contracts that changed hands during the previous session. Of the contracts that were traded,
12,916 were spread related.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
