By Dwayne Klassen, Commodity News Service Canada
January 24, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:34 CST Thursday morning with continued demand associated with the downswing in the value of the Canadian dollar, behind some of the upward price action, market watchers said.
The Canadian unit was said to have dropped below parity with the US dollar which in turn has encouraged fresh exporter interest as well as a pick up in domestic crusher demand, traders said. Speculative buying has also been triggered, further underpinning canola futures.
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“What we are seeing is the rationing of demand beginning to kick in, and in turn causing canola values to rise,” a broker said.
Chart-based demand from commodity funds was helping to generate some of the support in canola.
The upside in canola was being restricted by the losses seen in CBOT soybean and soyoil futures. The taking of profits at the highs was also capping some of the upward price action, traders said.
Spreading was again a key feature of the activity in canola and accounted for a good portion of the volume total.
As of 10:34 CST, about 11,762 canola contracts had traded. Of those contracts, spreading accounted for 8,342 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:34 CST:
