By Terryn Shiells, Commodity News Service Canada
December 21, 2012
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at stronger price levels at 8:38 CST Friday, as recent declines were seen as overdone and in need of a correction to the upside, analysts said.
Advances seen in the CBOT soybean complex also spilled over to support canola values. Concerns about tight supplies and bargain hunting at the lows helped soybean values move to higher ground.
Malaysian palm oil and European rapeseed futures also saw sharp gains in overnight trade, which helped to lift canola values.
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Steady commercial demand and a lack of significant farmer selling across western Canada also added to the bullish price sentiment in canola.
The downswing in the value of the Canadian dollar underpinned canola, as it made the commodity less expensive for foreign buyers.
However, beneficial weather for the development of soybean crops in South America slowed the advances.
As of 8:38 CST Friday, about 2,315 canola contracts had traded. Much of the activity was said to be position squaring ahead of the holidays.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:38 CST:
