By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 26/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels at 10:27 CDT Friday morning with steady commercial demand amid a lack of willing sellers generating the firm price tone, market watchers said.
Much of the commercial interest was said to be pricing old and new export business, as well as covering domestic processor needs, brokers said.
The downswing in the value of the Canadian dollar was an underpinning price influence, with the weaker currency attracting fresh demand for canola, traders said.
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Light speculative and commodity fund buying was also evident which contributed to the price strength.
The upside in canola was being restricted by the losses displayed by CBOT soybean and soyoil futures. The taking of profits by a variety of market participants ahead of the weekend also curbed the advances in canola.
Much of the selling that was coming into the market was being conducted on a scale up basis, brokers said.
As of 10:27 CDT, about 7,981 canola contracts had traded. Of those contracts, spreading accounted for 5,112 of the trades.
Milling wheat durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:27 CDT:
