ICE Canada Review: Canola Climbs on Renewed Fund Demand
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 18, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session significantly higher with re-energized speculative fund demand encouraging the upward price action, market watchers said.
Some of that demand was fueled by the easing of Euro-zone debt concerns, particularly from Ireland and regarding China’s monetary policies, brokers said. Locals were also noted buyers with some of that buying tied to oversold price sentiment. Some of the early upward price action in canola was spurred on by the advances posted by Malaysian palm oil and European rapeseed values overnight. Strength in CBOT soybean and soyoil values further contributed to the price gains seen in canola, traders said. A slow down in the level of panic selling by producers in western Canada also provided a firm floor for canola values, brokers said. Continued talk of fresh export demand for Canadian canola also prompted some of the advances. Domestic crushers were also noted buyers during the day, which added to the support, traders said. The upside in canola was tempered in part by the small upswing in the value of the Canadian dollar. Profit-taking at the highs of the day also restricted some of the price advances in canola. There were an estimated 11,570 canola contracts traded Thursday, down from the 16,393 contracts that changed hands during the previous session. Of the contracts traded, 4,032 were spread related. Western barley futures were unchanged and untraded Thursday. No western barley contracts traded on |
