By Dwayne Klassen, Commodity News Service Canada
March 19, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at stronger price levels at 10:38 CDT Tuesday morning with values shaking off early weakness. Some of the upward price push came on tight old crop supply concerns as well as on steady commercial demand for the commodity, market watchers said.
The surfacing of commercial demand for canola reflected the downswing in the value of the Canadian dollar, which makes the commodity more attractive. Both domestic processors and export outlets were looking to cover needs this morning, brokers said.
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Attempts by nearby CBOT soybean and soyoil futures to move to the plus side of the market further encouraged the strength displayed by canola, traders said.
The absence of significant farmer selling of canola into the cash pipeline in western Canada also contributed to some of the upward price action experienced by canola, brokers said.
Some of the early selling was attributed to the advancing harvest of a record sized soybean crop in South America and indications that some of those cheaper supplies were making their way onto the global market.
As of 10:38 CDT, about 7,413 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:38 CDT:
