By Dwayne Klassen, Commodity News Service Canada
March 20, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at firmer price levels at 10:49 CDT Wednesday morning with strength in the outside oilseed markets injecting the support, industry watchers said.
Gains were posted in CBOT soybean and soyoil futures as well as in Malaysian palm oil and European rapeseed overnight.
A drop off in the level of farmer deliveries into the cash pipeline in western Canada helped to influence some of the price strength as did some minor domestic crusher and exporter pricing, brokers said.
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The buying back of previously sold positions was also viewed as an underpinning price influence. Concerns about tight old crop canola stocks further lifted values.
The upside in canola was being restricted by sentiment the commodity is overpriced and needs to correct to the downside. The taking of profits helped to cap the upside. Some investor uncertainty, linked to the European debt woes, also tempered the upward price momentum in canola.
The ongoing harvest of a record sized soybean crop in South America also was seen limiting the gains, brokers said.
As of 10:49 CDT, about 5,102 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:49 CDT:
