By Dwayne Klassen, Commodity News Service Canada
April 10, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform ended Wednesday’s session on a mixed footing with the three nearby months up and the remainder down. Support in canola was associated with concerns about tight old crop stocks amid steady commercial usage, market watchers said.
The deferred values were weighed down by the losses experienced in CBOT soybean values.
Much of the commercial interest was linked to steady demand by domestic processors and export outlets, brokers said.
Read Also
Canadian Dollar and Business Outlook: Loonie stronger, crude oil slips again
Glacier FarmMedia | MarketsFarm – The Canadian dollar maintained its upward momentum on Wednesday morning. The loonie was at US$0.7348…
Chart based speculative and commodity fund buying further lifted the nearby canola futures.
Some of the upward price momentum was also tied to the absence of significant farmer deliveries of canola into the cash pipeline in western Canada, traders said.
Support in canola was also spurred on by the weather on the Canadian prairies which has not been conducive for farmers getting ready for spring seeding.
The upside in canola was restricted by the downturn experienced in CBOT soybean futures upon the release of USDA’ latest supply/demand balance sheets, brokers said.
The advancing soybean harvest in Brazil and Argentina also capped the upside price potential in canola. The taking of profits at the highs of the day also limited the price strength in canola.
Spreading was a feature of the activity in canola and contributed to the volume total.
There were an estimated 15,866 canola contracts traded Wednesday, up from the 10,298 contracts that changed hands during the previous session. Of the contracts traded, 12,374 were spread related.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
