By Dwayne Klassen, Commodity News Service Canada
March 27, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at steady to mostly higher price levels at 10:33 CDT Wednesday morning with some of the upward price action linked to steady commercial pricing, market watchers said.
Much of the commercial interest was said to be covering minor domestic crusher needs as well as some old export business.
Commodity fund buying was also evident and helped to keep a firm floor under canola, brokers said. Some of the fund demand was said to be chart-motivated.
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The lack of significant farmer deliveries of canola into the cash pipeline helped to underpin canola. The tight old crop supply situation was also a supportive price influence for the nearby months.
The upside in canola was being restricted by the taking of profits and by the downturn seen in CBOT soybean futures. The advancing soybean harvest activities in South America also capped the upside price potential.
The upside in canola was also tempered by ideas that Australia, with its large canola harvest, will reduce China’s demand for Canadian canola, traders said.
Activity in canola was described as choppy with few market participants wanting to take on large positions ahead of the USDA reports slated for release on Thursday. The pending three-day Easter holiday weekend was also keeping market players on the sidelines.
As of 10:33 CDT, about 8,488 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
