By Dwayne Klassen, Commodity News Service Canada
March 15, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at 8:33 CDT Friday morning with some of the price strength associated with the advances seen in the outside oilseed sector, market watchers said.
Gains were posted overnight in Malaysian palm oil with CBOT soyoil and some soybean contracts also on the plus side of the market early Friday.
Sentiment that canola was due for a correction to the upside after posting losses most of the week, also fueled some of the price gains, traders said.
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The buying back of previously sold positions was also viewed as an underpinning price influence.
Some of the upside in canola was also tied to concerns about tight old crop canola stocks and to steady demand from the export sector, brokers said.
Domestic crushers also remain interested in buying Canadian canola.
A drop off in the level of farmer deliveries of the commodity also helped to generate some support in canola, traders said.
The upside in canola was tempered by the upswing in the value of the Canadian dollar, the advancing South American soybean harvest and on ideas that canola is overpriced in comparison to soybeans, brokers said.
As of 8:33 CDT an estimated 963 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:33 CDT.
