By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 13/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:37 CST Thursday morning with some of the upward price action associated with sentiment that values were oversold and in need of a correction to the upside, market watchers said.
Additional strength in canola came from talk of fresh export demand being uncovered. Confirmation of new sales, however, was lacking.
Concerns about tight canola stocks in the cash pipeline also helped to fuel some of the upward price momentum, traders said. The tight supply situation reflected the absence of farmer deliveries, with most now holding back movement until after the Christmas and New Year holiday break.
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Steady crusher demand helped to keep a firm floor under canola with some pricing of old export business to Japan also seen as an underpinning price influence, brokers said.
The upside in canola was being capped by the declines seen in CBOT soyoil and the losses experienced overnight in Malaysian palm oil.
Firmness in the Canadian dollar also was viewed as a factor restricting the upside price potential.
As of 10:37 CST, about 7,203 canola contracts had traded. Of those contracts, spreading accounted for 5,698 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:37 CST:
