Dwayne Klassen, Commodity News Service Canada
March 26, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at steady to mostly higher prices at 10:29 CDT Tuesday morning with some of the strength in the nearby months associated with ideas that the sell-off seen on Monday was overdone, market watchers said.
Some small gains posted in CBOT soybean and soyoil futures helped to influence some of the price advances with the absence of significant farmer deliveries opf the commodity into the cash pipeline adding to the upward price momentum, brokers said.
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Some light commercial pricing of old export business further lifted canola futures.
Activity in canola was described as extremely light and choppy with few market participants wanting to establish large positions ahead of Thursday’s reports scheduled to be released by the USDA. The approaching three day holiday weekend was also keeping participants on the sidelines.
The upward price action in canola was restricted in part by the upswing in the value of the Canadian dollar.
The advancing harvest of a record sized soybean crop in South America also capped the upside price potential. Continued reports of China buying Australian canola also limited the strength in ICE canola futures.
As of 10:29 CDT, about 1,794 canola contracts had traded. Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:29 CDT:
