ICE Canada Grain/Oilseed Review: Canola Follows Soybeans Up
| 2 min read
| By Dwayne Klassen, Resource News International |
| May 1, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished the session mainly higher with the advances spurred on mainly by the gains experienced by the CBOT soybean complex, market watchers said. The upside in canola was limited throughout the session by the upward push in the value of the Canadian dollar.
Fresh speculative buying was uncovered in canola in the early part of the session, which in turn helped to push values upwards, brokers said. Contributing to the buying interest were the shapr advances seen in CBOT soybean and soyoil values. Strength in canola overnight was linked to firmness in Malaysian palm oil futures. Steady domestic processor demand helped to encourage the upward price action, as crush margins managed to improve despite the strong Canadian dollar, brokers said. The pricing of routine export business to Japan and Mexico by commercials helped to lift canola. Some short-covering ahead of the weekend was also a supportive price influence in canola. The upside in canola was limited by the strong Canadian dollar, which was causing buyers to back away from making new sales, brokers said. A pick up in farmer deliveries of canola in western Canada, as reflected by Canadian Grain Commission weekly numbers, helped to temper the advances. Sentiment that canola area will be larger than what Stats Canada reported in a survey on April 24, further limited the gains. There were an estimated 10,513 canola contracts traded during Friday’s session, up from 9,839 during the previous session. Of the contracts traded Friday, 2,094 were spread related. Western barley futures were little changed with the only real activity consisting of inter-month spreading between commercials, brokers said. An estimated 180 barley contracts changed hands during the session. On Thursday, 75 barley contracts were traded. Of the contracts traded Friday, 40 were spread related. |
