By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 24/12 – Canola futures on the ICE Canada trading platform ended Wednesday’s session on a firmer footing with strong demand from the export sector generating the upward price action, market watchers said.
Confirmation from export sources that at least three cargoes of Canadian canola have been sold to China encouraged the early advances in the commodity. Speculation that additional Canadian canola was in the process of being sold only served to further underpin prices.
Additional support in canola came from the pricing of old business to Japan by commercials. Steady demand from the domestic processing sector further bolstered canola, traders said.
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The lack of willing sellers amplified the price gains seen in canola, with farmers especially reluctant to deliver the commodity into the cash pipeline at present, brokers said.
The emergence of chart-related speculative and commodity fund buying also underpinned canola throughout the day.
Some of the early advances in canola were stimulated by the overnight gains posted in Malaysian palm oil and European rapeseed futures. The gains displayed by CBOT soybean and soyoil values Wednesday also provided some support.
Weakness in the Canadian dollar was also an underpinning price influence.
The upside in canola was restricted by the taking of profits at the highs of the day, traders said.
The rolling of positions from the November future to the January contract continued to be a feature of the activity in canola and helped to augment the volume total.
There were an estimated 19,375 canola contracts traded Wednesday, down fractionally from the 19,444 contracts that changed hands during the previous session. Of the contracts traded, 13,328 were spread related.
Milling wheat futures were untraded by ICE Canada increased values at the close.
Barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
