ICE Canada Review: Oversold Ideas Lift Canola
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session with significant advances. Gains in canola were influenced by sentiment that the sharp losses seen on Friday were overdone and that prices needed an upward correction, market watchers said.
A pick up in the level of commercial demand also contributed to the upward price momentum seen in the commodity Monday. Much of the buying interest from commercials was associated with the pricing of old export business to Japan as well as the covering of domestic crusher needs, brokers said. Some of the early strength in canola was encouraged by the overnight advances seen in Malaysian palm oil and European rapeseed futures, traders said. Strength in CBOT soybean futures further enhanced the advances seen in canola with early gains in soyoil also adding to the upward momentum. The absence of farmer deliveries of canola into the cash pipeline in western Canada on the weekend helped to prop up canola futures during the session, traders said. Local and speculative buying interest was also evident and helped to underpin canola futures, brokers said. The upside in canola was restricted by the minor upswing in the value of the Canadian dollar and the continued absence of fresh, confirmed, export business. Profit-taking at the highs was also evident and further tempered the upswing in canola. There were an estimated 13,994 canola contracts traded Monday, down from the 17,933 contracts that changed hands during the previous session. Of the contracts traded, 3,756 were spread related. Western barley futures were unchanged and untraded Monday. No western barley contracts traded on Friday. |
