By Dwayne Klassen, Commodity News Service Canada
January 28, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at firmer price levels at 08:29 CST Monday morning with the continued downfall in the value of the Canadian dollar providing good support, market watchers said. The weak Canadian currency continues to encourage exporter and domestic crusher demand.
The tight supply concerns for Canadian canola added to the bullish price sentiment in the commodity.
Steady chart-based buying by commodity funds and speculative accounts helped to generate the upward price action seen in canola, brokers said.
Read Also
ICE Midday: Canola still on the rise
Glacier FarmMedia – Canola futures on the Intercontinental Exchange extended their rally on Friday. An analyst said if the January…
Early strength in CBOT soybean and soyoil futures had also helped to spur some buying in canola. However, CBOT soybeans have since turned lower and the gains in soyoil have detonated to small degree, taking some of the upward edge off of canola, brokers said.
Steady elevator company hedge selling, tied to consistent movement of canola by farmers during the weekend, helped to limit the upside price potential, brokers said.
As of 08:29 CST an estimated 2,031 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:29 CST.
