By Dwayne Klassen, Commodity News Service Canada
April 2, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at 8:37 CDT Tuesday morning with the upturn in the outside oilseed sectors generating some of the price strength, market watchers said.
Gains were experienced overnight in Malaysian palm oil and European rapeseed futures. Gains were also seen in CBOT soybean and soyoil futures.
Some of the buying that surfaced in canola also reflected sentiment that the sell-off was overdone and that values needed to correct to the upside, brokers said.
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Minor commercial demand, believed to be covering export business, further contributed to the upward price momentum in canola.
Concerns about a slow start to spring seeding of canola in western Canada due to excess moisture and cool temperatures helped to fuel some strength in the deferred months.
The upside in canola was capped by the advancing harvest of a record sized soybean crop in South America and from reports that those supplies were starting to make their way onto the global market.
As of 8:37 CDT an estimated 1,202 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:37 CDT.
