By Dwayne Klassen, Commodity News Service Canada
May 16, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels in early Thursday morning activity. Much of the strength that surfaced in canola came in response to the upswing in CBOT soybean and soyoil values, market watchers said.
The taking of profits accounted for some of the downward price action experienced in the nearby July future.
Underlying support in canola was coming from the buying back of previously sold positions ahead of the upcoming three day holiday weekend. The ICE Canada platform will be closed on Monday, May 20 for the Victoria Day holiday. US markets, however, will be open.
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Continued concerns about tight old crop canola stocks helped to influence some support. Weather outlooks calling for wet and cooler conditions over the weekend were seen as mildly supportive with the precipitation seen delaying seeding operations over much of the Canadian prairies, brokers said.
The downswing in the value of the Canadian dollar was helping to generate some underlying support.
Reduced demand from the domestic and export sectors was helping to restrict some of the upward price action, traders said.
As of 08:46 CDT, about 1,322 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 08:46 CDT:
