By Dwayne Klassen, Commodity News Service Canada
January 7, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished the session on a stronger footing with the advances associated with tight supply concerns as well as the gains experienced by the CBOT soybean complex, market watchers said.
Steady demand from the export and domestic sectors for Canadian canola has created concerns about ending stocks of the commodity being extremely tight when the 2012/13 season comes to an end on July 31, 2013, trader said.
Elevator companies in western Canada have been paying premiums to entice farmers to deliver canola in order for them to meet export and domestic sales commitments, brokers said.
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The advances posted by CBOT soybean and soyoil futures helped to encourage the price advances in canola. The buying back of previously sold positions contributed to the upward price action. The triggering of speculative and commodity fund buy orders on the way up also amplified the price strength displayed by canola, traders said.
The gains in canola were tempered throughout the session by the taking of profits at the highs. Firmness in the Canadian dollar Monday also restricted some of the upward price action.
There were an estimated 12,690 canola contracts traded Monday, down from the 16,447 contracts that changed hands during the previous session. Of the contracts that changed hands, 6,126 were spread related.
No milling wheat, durum or barley contracts were traded.
Prices are in Canadian dollars per metric ton.
