By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 22/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:35 CDT Monday morning with the early advances spurred on by talk of fresh export demand coming forward for the commodity and from the advances in the outside oilseed markets, industry watchers said.
There were ideas that some fresh Canadian canola export sales were covered in early morning activity, which sparked the strong gains in the commodity, traders said. Exporters, however, were unable to confirm fresh sales.
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Additional strength in canola stemmed from the advances experienced by CBOT soybean values as well as by Malaysian palm oil and European rapeseed futures.
Continued concerns about tight canola supplies in western Canada helped to fuel the buying as did the pull back in the value of the Canadian dollar.
Improvements in the crush value for domestic processors also encouraged fresh demand from that sector for canola, traders said.
Farmers also remain reluctant sellers of canola which further underpinned the commodity, brokers said.
A lot of the volume seen in canola consisted of spreading, with commercials and commodity funds seen rolling positions out of the nearby November future and into the January contract.
As of 10:35 CDT, about 11,429 canola contracts had traded. Of the contracts traded, 9,562 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:35 CDT:
