By Dwayne Klassen, Commodity News Service Canada
June 3, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished Monday’s session on a mostly firmer footing with the upswing in CBOT soybean and soyoil futures behind much of the upward price momentum, market watchers said.
Canola did experience price movement to both sides of the plus/minus line during the session with some of the early selling linked to the upswing in the value of the Canadian dollar as well as to elevator company hedge selling, spurred in part by an increase in farmer deliveries of canola on the weekend.
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Sentiment that a good portion of the intended canola acres had been planted and reports of good emergence, had also sparked some early selling in the commodity, brokers said.
However, the gains in the CBOT soybean complex encouraged the eventual advances. Some strength was also drawn from steady commercial buying, believed to be covering routine export business as well as domestic crusher needs. Chart-based buying by speculative and commodity fund accounts helped to generate some of the strength seen in canola, brokers said.
Spreading continued to be a big part of the activity in canola. A lot of the action included the rolling of spreads out of the July future and into the November contract, traders said.
The upside in canola was capped by the ample supply of cheap South American soybeans on the global market.
There were an estimated 24,834 canola contracts traded Monday, up from the 20,211 contracts that changed hands during the previous session. Of the contracts traded, 12,062 were spread related.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
