By Dwayne Klassen, Commodity News Service Canada
January 23, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:29 CST Wednesday morning with much of the upward price action associated with the downswing in the value of the Canadian dollar, market watchers said.
The Canadian unit, which was trading at par or slightly below parity with the US dollar Wednesday, was said to be stimulating fresh speculative demand as well as encouraging fresh domestic and exporter interest, traders said.
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There were rumours that fresh demand has surfaced for both Canadian canola as well as Canadian canola oil, brokers said. Confirmation of the new sales was not available.
Gains overnight in Malaysian palm oil helped to fuel some of the advances in canola with chart-based buying by commodity funds further lifting canola.
The upside in canola was tempered by the losses seen in CBOT soyoil futures. The taking of profits at the highs of the day also capped some of the upside price potential in canola. Steady elevator company hedge selling, linked to steady farmer deliveries of canola into the cash pipeline, also slowed the upward price push, brokers said.
Spreading was again a key feature of the activity in canola and accounted for a good portion of the volume total.
As of 10:29 CST, about 12,754 canola contracts had traded. Of those contracts, spreading accounted for 8,350 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:29 CST:
