By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 14/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:23 CST Friday morning. Some of the upward price momentum was linked to the general strength being displayed by CBOT soybean and soyoil futures, market watchers said.
Activity in canola was described as volatile with market participants waiting for some fresh market fundamentals to surface.
Additional strength in canola was associated with the routine pricing of old export business by commercials. Domestic crusher buying interest was also evident and helped to generate some support, brokers said.
Read Also
Canadian Financial Close: C$ ends steady Wednesday
Glacier FarmMedia — The Canadian dollar was steady on the day at Wednesday’s close, recovering from three-week lows relative to…
The continued reluctance of farmers to deliver canola into the cash pipeline in western Canada further underpinned canola futures. Traders were noting that commercials have begun to offer premiums in some locations of the Canadian prairies to entice farmer sales.
Light chart-based commodity fund buying was also evident and helped to fuel the upside in canola.
The advances in canola were capped by profit-taking at the highs of the day. The general strength of the Canadian dollar also slowed the upward price push.
As of 10:23 CST, about 9,083 canola contracts had traded. Of those contracts, spreading accounted for 6,960 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:23 CST:
