By Dwayne Klassen, Commodity News Service Canada
June 18, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels in early Tuesday morning activity. Sentiment that values were oversold and in need of a correction to the upside helped to fuel some of the price strength, market watchers said.
The advances posted overnight in Malaysian palm oil were supportive as were the gains experienced in CBOT soybean and soyoil futures early Tuesday, brokers said.
Steady commercial demand, said to be covering domestic crusher needs, as well as both old and new export business, also contributed to the firmness in canola, traders said.
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Uncertainty regarding the weather and its impact for the development of the crop on the Canadian prairies was also keeping some price strength built into values.
The downswing in the value of the Canadian dollar was also viewed as an underpinning price influence.
The upside in canola was capped in part by steady elevator company hedge selling, spurred on by light, but steady farmer deliveries of canola into the cash pipeline.
As of 08:45 CDT, about 5,862 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 08:45 CDT:
