By Dwayne Klassen, Commodity News Service Canada
March 4, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:32 CST Monday morning with the strength stemming from the advances seen in the outside oilseed markets, industry watchers said.
Buying interest in canola was stimulated by the overnight gains posted by Malaysian palm oil and European rapeseed futures. Gains Monday in CBOT soybean and soyoil futures further contributed to the upward price momentum.
Chart-based buying contributed to the strength seen in canola, with that interest said to be coming from both speculative and commodity fund accounts, traders said.
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Concerns about tight old crop supplies helped to augment the advances in the nearby months with light domestic crusher demand adding to the friendly price tone.
Weakness in the Canadian dollar was also an underpinning price influence for canola.
The upside in canola was capped by the taking of profits at the highs of the day and by light, but steady elevator company hedge selling, spurred on by farmer deliveries during the weekend, brokers said.
Spreading was a small feature of the activity in canola but still helped to augment the volume total.
As of 10:32 CST, about 4,126 canola contracts had traded. Of those contracts, spreading accounted for 2,172 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:32 CST:
