By Dwayne Klassen, Commodity News Service Canada
April 18, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished Thursday’s session mainly higher with the nearby contracts finding good support from the tight supply situation, market watchers said. Good volume totals were evident in the commodity with much of that associated with spreading.
The tight supply concerns were facilitated in part by the strong usage of the crop by the domestic and export sectors, traders said. Delays in planting next year’s canola crop due to excess moisture and cold temperatures on the Canadian prairies also helped to fuel the advances, given that end-users will need to work with old crop canola longer than they would have liked, brokers said.
Read Also
Canadian Financial Close: Loonie gives up tenth of a cent
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar eased back on Monday, positioning ahead of Wednesday’s…
Support in old crop months was also tied to the absence of farmer deliveries, with producers not anxious to deliver what supply they have into the cash market given the potential for higher prices, traders said.
Some of the upward price action seen in canola was also spurred on by the generally firm tone experienced by CBOT soybean and soyoil futures.
The upside was capped by the taking of profits at the highs of the day. The realigning of spreads also helped to underpin the nearby months while weighing on the deferred contracts, brokers said.
There were an estimated 29,216 canola contracts traded Thursday, up from the 15,670 contracts that changed hands during the previous session. Of the contracts traded, 21,238 were spread related.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
