By Dwayne Klassen, Commodity News Service Canada
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at 10:25 CDT Tuesday morning with some of the upside associated with sentiment that the recent declines were overdone and that a correction to the upside was needed, market watchers said.
The buying back of previously sold positions by speculative and commodity fund accounts contributed to some of the strength seen in canola, traders said.
Light commercial demand, believed to be covering domestic crusher needs as well as routine export business, further lifted canola futures.
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The general firmness in CBOT soybean values added to the support in canola. Tight old crop supply concerns were also an underpinning price influence.
The upside in canola was being restricted by steady farmer deliveries of canola into the cash pipeline. Sentiment that the canola crop in western Canada was off to a good start also limited the upside price potential, brokers said.
Spreading remained a feature of the activity in canola and was helping to augment the volume total.
As of 10:25 CDT, about 9,875 canola contracts had traded. Of the contracts traded, 4,226 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
