By Dwayne Klassen, Commodity News Service Canada
March 21, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished Thursday’s session with advances with some of the upward price action encouraged by the gains posted in CBOT soybean and soyoil futures, market watchers said.
Additional strength in canola came from continued worries over the extremely tight old crop supply situation. Traders noted even though the domestic crush in western Canada has slowed to a level that what was below the year ago pace, demand from this sector has remained fairly good. Export business has also been on a regular basis, helping to stimulate the tight supply situation. Agriculture Canada in its latest supply/demand tables forecast 2012/13 (Aug/Jul) canola ending stocks at a very small 350,000 tonnes.
Read Also
Canadian Financial Close: Loonie gives up tenth of a cent
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar eased back on Monday, positioning ahead of Wednesday’s…
The buying back of previously sold positions helped to fuel the upside in canola as did a drop off in the level of farmer deliveries of canola into the cash pipeline in western Canada.
The upside in canola was restricted by the taking of profits and by the upswing in the value of the Canadian dollar. The continued harve4st of a record sized soybean crop in South America also continued to temper the upward momentum in canola, brokers said.
There were an estimated 14,138 canola contracts traded Thursday, up from the 8,567 contracts that changed hands during the previous session.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
