By Dwayne Klassen, Commodity News Service Canada
March 21, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at firmer price levels at 10:51 CDT Thursday morning with the rally in CBOT soybean and soyoil futures behind the upward price action, market watchers said.
Some light domestic processor demand and the pricing of export business by commercials also helped to encourage some of the price strength in canola, traders said.
A drop off in farmer deliveries of canola into the cash market contributed to the upward price action as did continued concerns about tight old crop canola stocks, brokers said. They noted that demand from the commercial sector needs to slow significantly in order for supplies of the crop to not run out. Agriculture Canada in its latest supply/demand update pegged 2012/13 (Aug/Jul) canola ending stocks at a very tight 350,000 tonnes.
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The buying back of previously sold positions also helped to generate somne minor support.
The upside in canola was tempered by the taking of profits and by the upswing in the value of the Canadian dollar, traders said.
As of 10:51 CDT, about 8,304 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:51 CDT:
