By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 30/12 – Canola futures on the ICE Canada trading platform ended Tuesday’s session mostly higher with much of the upward price action associated with steady commercial demand and the general firmness experienced by CBOT soybean values, market watchers said. Activity was described as subdued with a number of market participants taking to the sidelines amid the closure of the US financial markets because of Hurricane Sandy.
Much of the commercial interest in canola was linked to the pricing of old export business to Japan. Concerns about the tight canola supply situation in Canada also bolstered values, brokers said.
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The relative reluctance of farmers in western Canada to deliver canola into the cash pipeline further underpinned prices.
Some light speculative and commodity fund buying had also been evident during the day adding to the firmness in canola, brokers said.
However, the late day easing in CBOT soybean advances sparked some selling that took canola off its highs. Profit-taking and the general firmness of the Canadian dollar also restricted the upside in canola, traders said.
The losses posted by Malaysian palm oil and European rapeseed futures overnight also limited the upward price movement in canola.
Much of the activity in canola consisted of spreading, with the rolling out of November and into the January contract a feature.
There were an estimated 7,869 canola contracts traded Tuesday, down from the 16,302 contracts that changed hands during the previous session. Of the contracts that changed hands, 3,970 were spread related.
Milling wheat, barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
