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ICE canola up with commercial buying

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Published: September 27, 2013

By Terryn Shiells, Commodity News Service Canada

September 27, 2013

WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 10:53 CDT Friday, finding support from a pickup in commercial buying, as canola is attractively priced compared to other oilseeds, brokers said.

Some of the buying was also linked to commercials covering their positions ahead of the weekend and Monday’s USDA quarterly stocks report.

Good demand and routine buying from crushers and exporters kept a firm floor under the market.

A slowdown in harvest progress due to recent heavy rains in Saskatchewan also helped to underpin canola values.

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However, good harvesting weather is expected to return to Western Canadian growing regions next week, which helped to limit the upside in canola.

Technical based selling, increased farmer hedging and expectations that the Canadian canola crop will be record large also helped to keep a lid on the gains.

As of 10:53 CDT Friday, about 14,555 contracts had traded.

Milling wheat, barley and durum were untraded and unchanged following price revisions after the close on Thursday.

Prices in Canadian dollars per metric ton at 10:53 CDT:

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