By Dwayne Klassen, Commodity News Service Canada
March 26, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished Tuesday’s session on a mainly firmer footing with support in the old crop months linked to concerns about tight old crop supplies and to ideas that the sell-off seen on Monday was overdone and that a correction to the upside was needed, market watchers said.
Some of the upward price action in canola also reflected the advances seen in CBOT soybean and soyoil futures. The lack of significant farmer deliveries of canola into the cash pipeline in western Canada also influenced some early buying of the commodity, traders said.
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Some light commercial pricing of old export business was also evident earlier in the day and further bolstered values.
However, as the day progressed, the buying that had surfaced in canola began to fade, allowing values to ease off their highs. The taking of late-day profits further eroded the gains, traders said.
Firmness in the Canadian dollar during the day also kept a lid on the upside price potential in canola, brokers said.
Activity was described as light and choppy with participants hesitant to establish any large positions in the market ahead of the prospective plantings and stocks report due out from the USDA on Thursday. The upcoming three-day holiday weekend further kept participants sidelined.
The advancing harvest of a record sized soybean crop in Brazil
There were an estimated 11,560 canola contracts traded Tuesday, down from the 14,077 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.
