ICE Canada Review: Export Interest Lifts Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 3, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session mainly higher with the upward momentum associated with talk of fresh export demand as well as to the gains seen in CBOT soybeans and soyoil both Monday and today, market watchers said.
Canola found good support throughout the day on indications that Mexico has picked up some fresh quantities of Canadian canola for an unspecified delivery period. Export sources, however, were unable to confirm the report. Support in canola also came from the gains seen in CBOT soybeans and soyoil on Monday when the ICE Canada trading platform was closed for a holiday. The late day upturn in CBOT soybeans and soyoil Tuesday contributed to the strength displayed by canola, brokers said. Gains in canola were also linked to steady domestic crusher demand and the pricing of old export business to Japan, traders said. Some concern about growing conditions for canola in western Canada given the steady influx of rain, also helped to generate some support. The buying back of short positions was also evident and added to the advances, brokers said. The gains in canola were restricted by steady elevator company hedge selling, with producers continuing to be good sellers of canola into the cash pipeline, brokers said. Losses overnight in Malaysian palm oil and European rapeseed futures helped to trim the upside. Firmness in the Canadian dollar also limited the gains in canola, traders said. There were an estimated 11,340 canola contracts traded Tuesday, up from the 6,600 contracts that changed hands during the previous session. Western barley futures were unchanged with no contracts changing hands on Tuesday. On Friday, no barley contracts were traded. |
