By Dwayne Klassen, Commodity News Service Canada
February 27, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at slightly firmer price levels at 8:50 CST Wednesday morning with some of the price strength tied to oversold price sentiment and the upturn experienced by the outside oilseed markets, industry watchers said.
Gains were posted overnight in Malaysian palm oil and European rapeseed futures. Advances were also being experienced in CBOT soybean and soyoil futures Wednesday morning.
The generally weak tone in the Canadian dollar continued to provide underlying support to canola with the weak currency making canola attractive to foreign buyers, traders said.
Light domestic crusher demand and the pricing of old export business was also offering some support to canola, brokers said.
The upside in canola was being tempered by the large soybean crop prospects from South America. Steady farmer deliveries of old crop canola into the cash pipeline in western Canada was also restricting the price gains.
Chart signals have also turned bearish and were further limiting the upside price potential, brokers said.
As of 8:50 CST an estimated 3,899 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:50 CST.