By Dwayne Klassen, Commodity News Service Canada
April 19, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished on a firmer footing Friday with some of the upward price action linked to aggressive commodity fund buying, market watchers said. Some of that interest was spurred on by the tight old crop canola supply situation.
Some of the fund demand was also linked to efforts to trigger some buy-stop orders upon the penetration of some key technical resistance levels in a number of canola contracts, brokers said.
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Additional strength in canola was associated with continued strong demand from the export and domestic sectors. The absence of significant farmer deliveries of canola into the cash pipeline also generated some of the upward price momentum, traders said.
Continued concerns over delays in seeding canola on the Canadian prairies due to cold and wet weather also helped to stimulate some buying interest in the commodity, traders said.
The upside in canola was restricted by the taking of profits at the highs of the day. Declines in CBOT soybean and soyoil futures also discouraged some of the upward price movement, brokers said.
Delays in seeding the US corn crop and the increased possibility of a significant jump in soybean area helped to limit the upside in the deferred canola futures, brokers said.
There were an estimated 26,664 canola contracts traded Friday, down from the 29,216 contracts that changed hands during the previous session. Of the contracts traded, 19,380 were spread related.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
