By Phil Franz-Warkentin, Commodity News Service Canada, Nov. 8, 2012
Winnipeg – Canola contracts on the ICE Futures Canada platform were higher at 10:45 CST Thursday, as end user demand and supportive technical signals helped values recover from overnight declines.
Japanese pricing of old export business was behind some of the strength in the lightly traded canola market, according to a broker. He said a lack of fund selling, after speculators were heavy sellers earlier in the week, was also supportive.
Farmers were also on the sidelines for the most part, according to the broker.
The most active January contract was testing the C$600 per tonne level at midsession. The psychological chart point had provided solid resistance on Wednesday, but if prices managed to push decisively above that level some buy stops could be triggered, said the broker.
The USDA releases updated supply/demand estimates on Friday, and positioning in the US markets ahead of that report was keeping some caution in the grains and oilseeds, including canola. The report is generally expected to include an upward revision in US soybean production.
At 10:45 CST, about 4,200 canola contracts had changed hands with intermonth spreading only a minor factor.
Milling wheat, durum, and barley futures were all untraded and unchanged.