By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 28/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:41 CST Friday morning with some of the upward price momentum associated with concerns about the availability of nearby supplies, market watchers said.
Commercial elevators were said to be offering premiums to farmers who deliver canola in the immediate future, brokers said. The premiums were varied and were dependent on the region of the Canadian prairies. Traders speculated that the offers were linked to the need to cover export commitments.
Read Also
Canadian Financial Close: C$ firm Friday
Glacier FarmMedia — The Canadian dollar strengthened Friday, as dovish comments out of the United States Federal Reserve weighed on…
Additional support in canola also came from the advances experienced overnight in Malaysian palm oil and European rapeseed futures. Strength in CBOT soyoil futures also encouraged the price gains seen in canola.
The downswing in the value of the Canadian dollar helped to generate some strength as did the buying back of previously sold positions by a variety of market participants, brokers said.
The rolling of positions out of the nearby January future and into more deferred contracts continued to be a feature of the activity in canola, traders said.
The upside in canola was restricted by bouts of profit-taking at the highs as well as by the prospect of a record large soybean crop being produced in South America.
As of 10:41 CST, about 7,239 canola contracts had traded. Of those contracts, spreading accounted for 6,596 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:41 CST:
