By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 1/12 – Canola futures on the ICE Canada trading platform finished with advances on Thursday with steady commercial demand and the advances in CBOT soybean futures providing much of the upward price momentum, market watchers said.
Much of the commercial interest was linked to the pricing of recent Japanese purchases of Canadian canola. A small improvement in crush margins also helped to stimulate some buying from domestic processors.
The advances in canola were helped along by the upswing in CBOT soybean and soyoil futures. Ongoing concerns about the tight canola supplies in western Canada helped to underpin values as did some light chart-based speculative and commodity fund buying, brokers said.
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The relatively slow pace of canola deliveries into the cash pipeline by farmers also provided a firm floor for the commodity to work with, traders said.
The upside in canola was capped by bouts of profit-taking from a variety of market participants. The upswing in the value of the Canadian dollar further restricted the price advances, traders said.
Sentiment that canola is overpriced at current levels also limited the upside price potential, brokers said.
Activity in canola was on the light side with market participants noting that it did not take much in the way of buying or selling to move values in either direction during the session.
There were an estimated 9,084 canola contracts traded Thursday, down from the 16,221 contracts that changed hands during the previous session. Of the contracts that changed hands, 4.176 were spread related.
Milling wheat, barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
