By Dwayne Klassen, Commodity News Service Canada
January 16, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:35 CST Wednesday morning with steady demand from the commercial sector helping to keep values firm, market watchers said. Activity was described as choppy with spreading dominating the volume total in canola.
Strength in CBOT soybean and soyoil futures contributed to the upward price action as did the overnight advances experienced by Malaysian palm oil and European rapeseed futures, brokers said.
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Much of the commercial interest was said to be coming from domestic processors, with profit margins running at the highest level seen in a couple of months, traders said. The pricing of old export business was also evident and helped to generate some of the price strength.
Continued concerns about tight canola ending stocks further underpinned the commodity.
The upside in canola was being restricted by the taking of profits by a variety of market participants. The easing of the gains in the CBOT soybean complex also capped the upside in canola.
A pick up in farmer deliveries of canola in western Canada further limited the upside in canola. Traders noted that cash bids for canola were sitting at some pretty attractive levels and were enticing farmers to open up their bins.
As of 10:35 CST, about 8,695 canola contracts had traded. Of those contracts, spreading accounted for 6,506 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:35 CST:
