By Dwayne Klassen, Commodity News Service Canada
April 9, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished Tuesday’s session on a mostly firmer footing with steady commercial demand providing some of the support, market watchers said. Most of the commercial interest was believed to be covering domestic crusher and exporter needs.
Activity in canola was described as extremely volatile with few market participants wanting to establish large positions ahead of the USDA supply/demand reports due out Wednesday.
Canola values moved to both sides of the plus/minus line during the session.
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Some of the support in canola also came from the mostly firmer price tone seen in CBOT soybean and soyoil futures.
The absence of significant farmer selling of canola into the cash market in western Canada helped to generate some of the price strength, traders said.
Worries about delayed seeding of the canola crop in western Canada dur to adverse weather conditions further lifted canola futures.
The upside in canola was tempered by the taking of profits and by the small upswing in the value of the Canadian dollar. The advancing soybean harvest in South America also limited the upside price potential.
The inability of the nearby May future to push above technical resistance also was viewed as bearish for the commodity.
There were an estimated 10,298 canola contracts traded Tuesday, down from the 13,612 contracts that changed hands during the previous session. Of the contracts traded, 7,550 were spread related.
No milling wheat, durum or barley contracts were traded during the session. Prices are in Canadian dollars per metric ton.
