By Dwayne Klassen, Commodity News Service Canada
March 11, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading in a mixed range with the nearby months up and the deferred down at 8:37 CDT Monday morning. Steady commercial demand lifted old crop canola contracts as did the small advances in the nearby CBOT soybean contracts, market watchers said.
The steady to slightly firmer price tone in Malaysian palm oil and European rapeseed futures overnight also helped to spur some early strength in old crop canola months, brokers said.
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Activity in canola was extremely thin and choppy with few market participants willing to establish large positions in the absence of fresh fundamental inputs.
The weakness in the deferred contracts were being linked to the expectations of a large South American soybean harvest, as well as an increase in US soybean acreage this spring. The potential for Canadian canola output to be larger despite a roll back in seeded area, also was an undermining influence on new crop values.
The gains in the old crop canola contracts were being tempered by steady farmer deliveries of canola into the cash pipeline.
As of 8:37 CDT an estimated 389 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:37 CDT.
