By Dwayne Klassen, Commodity News Service Canada
June 7, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at 10:26 CDT Friday morning. Of the five contracts that were experiencing some price action, only the July future was under downward pressure.
Strength in canola was attributed to the advances seen in CBOT soybean and soyoil futures and from steady commercial demand for new crop canola supplies, market watchers said.
A lot of the price action was viewed as evening up ahead of the weekend. Some consolidation after recent declines was another feature of the activity in canola, brokers said.
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Light speculative and commodity fund demand was also evident and further underpinned the deferred months in canola, traders said.
The upside in canola was restricted by the upswing in the value of the Canadian dollar. Mostly favourable weather for the development of the canola crop in western Canada also capped the upside in new crop contracts.
The rolling out of the July future and into the deferred months put downward pressure on the July future and provided support for the other months, brokers said.
As of 10:26 CDT, about 7,243 canola contracts had traded. Of the contracts traded, 4,304 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:26 CDT:
