By Dwayne Klassen, Commodity News Service Canada
January 18, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at firmer price levels at 08:27 CST Friday morning with light speculative buying helping to fuel the upside, market watchers said. Activity was described as light and choppy with the evening of positions ahead of the three day weekend in the US a feature. US markets will be closed on Monday for Martin Luther King Day.
Small gains in CBOT soybean futures helped to encourage the upward price push with strength overnight in Malaysian palm oil also contributing to the advances in canola, traders said.
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Steady demand from the domestic sector helped to buoy canola with the pricing of old export business also adding some support, brokers said.
The upside in canola was being restricted by the declines being experienced by CBOT soyoil futures. Steady elevator company hedge selling, tied to a pick up in farmer deliveries of canola into the cash market also limiting the upside price potential.
As of 08:27 CST an estimated 3,912 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:27 CST.
