By Dwayne Klassen, Commodity News Service Canada
January 17, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were posting small advances at 08:28 CST Thursday morning with steady demand from the domestic sector helping to generate some of the upward price action, market watchers said.
Continued concerns about tight canola ending stocks also influenced some of the upward price movement.
Some light speculative and commodity fund buying was also evident which was seen as an attempt to push the nearby March canola future through technical resistance at C$600 per tonne.
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The pricing of old export business was also apparent and helped to keep a firm floor under canola, brokers said.
The upside in canola was being restricted by the losses seen in CBOT soyoil futures. Declines overnight in Malaysian palm oil also slowed the price climb seen in canola.
Talk of a pick up in farmer deliveries of canola into the cash pipeline given attractive cash bids, also tempered some of the price strength, brokers said.
As of 08:28 CST an estimated 3,912 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:28 CST.
