ICE Canada Grain/Oilseed Rev: Soybean Gains Boost Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 21, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished the session higher with steady buying interest from locals and commercials accounting for the upward price movement, market watchers said.
Much of the buying interest was stimulated by the upward price push seen in CBOT soybean and soyoil futures. Light pricing of old export business helped to underpin canola futures with gains also reflecting the slow pace of farmer deliveries, brokers said. Strength in the outside markets, including global crude oil, helped to generate some of the price gains seen in canola. Concerns about delays in finishing up the canola harvest in western Canada contributed to the strength, brokers said. Some light chart based buying was also evident in canola and helped to underpin prices. The upside in canola was limited by the strong Canadian dollar, which was scaring off export business, traders said. Reduced demand from domestic crushers also limited the upside price potential. Some profit-taking at the highs also limited the gains. Spreading of the Nov/Jan contracts was a feature of the activity and helped to augment the volume total. There were an estimated 26,773 canola contracts traded during Wednesday’s trade, up from 20,463 during the previous session. Western barley futures were higher with the advances in CBOT corn spilling over to bolster values, brokers said. Small commercial demand, in the absence of willing sellers, helped to amplify the price gains. An estimated 364 barley contracts changed hands during the session. On Tuesday, 210 barley contracts were traded. |
