By Dwayne Klassen, Commodity News Service Canada
February 19, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished with significant advances on Tuesday with fresh fund demand and the advances in the outside oilseed markets providing much of the upward price incentive, industry watchers said.
Good gains were posted overnight in Malaysian palm oil futures which helped to initiate the upward price push in canola, traders said. The sharp advances experienced by CBOT soybean and soyoil futures further enhanced the price gains seen in canola.
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Weakness in the Canadian dollar helped to generate support for canola as did the triggering of buy-stop orders on the way to hi9gher ground, brokers said.
The less than anticipated amounts of precipitation in the soybean growing regions of Argentina contributed to the price strength in canola as did ongoing worries about tight old crop canola supplies, traders said. Steady domestic demand and the pricing of old export business helped to underpin canola futures.
The upside in canola was restricted in part by the taking of profits at the highs of the day. A pick up in elevator company hedge selling, tied in part to increased farmer deliveries of canola into the cash pipeline also tempered some of the upward price momentum, brokers said.
Spreading was a feature of the volume total in canola. Some of that action was attributed to the rolling of positions out of the nearby March future and into other contracts by the large comodity funds, brokers said.
There were an estimated 32,155 canola contracts traded Tuesday, up from the 24,469 contracts that changed hands during the previous session. Of the contracts that changed hands, 28,076 were spread related.
No milling wheat, durum or barley contracts were traded.
Prices are in Canadian dollars per metric ton.
