By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 23/12 – Canola futures on the ICE Canada trading platform finished Tuesday’s session mainly higher with steady demand from the commercial sector encouraging the price advances, market watchers said.
Some of the commercial interest was said to be covering domestic crusher needs as well as export business, traders said. Some of the export business was believed to be fresh sales.
Sentiment that canola was undervalued in comparison to the other oilseeds also generated some support for the commodity.
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The buying back of previously sold positions was seen as another supportive price influence for canola. The minor downswing in the value of the Canadian dollar also provided some minimal support.
The declines in CBOT soybean and soyoil futures had restricted the price advances in canola, but the late day upturn in some of those contracts prompted some additional support, traders said.
The reluctance of farmers in western Canada to deliver canola into the cash pipeline, given the tight supply outlook for the commodity, also underpinned values.
The upside in canola was capped by the taking of profits by a variety of market participants. Declines ove4rnight in Malaysian palm oil and European rapeseed futures helped to slow the price advances.
Improved weather for the planting of the South American soybean crops also tempered the upside in canola.
The rolling of positions from the November future to the January contract continued to be a feature of the activity in canola and helped to augment the volume total.
There were an estimated 19,444 canola contracts traded Tuesday, down from the 22,256 contracts that changed hands during the previous session. Of the contracts traded, 14,074 were spread related.
Milling wheat, barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
