ICE Canada Grain/Oilseed Review: CBOT Soy Gains Prop Up Canola
| 3 min read
| By Dwayne Klassen, Resource News International |
| April 8, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished the day mainly higher with strength associated with the advanced exhibited by the CBOt soybean complex, market watchers said.
Activity was on the lighter side as a number of market participants took to the sidelines to await Thursday’s updated supply/demand tables from the USDA. Canola had traded on both sides of the plus/minus line overnight with some of the early selling prompted by the losses seen in Malaysian palm oil and Matif rapeseed futures, traders said. Firmness in the Canadian dollar had also been viewed as an undermining price influence. Canola futures moved upwards in response to the advances posted in CBOT soybean and soyoil values, brokers said. Generally light farmer sales and steady commercial demand contributed to the strength seen in canola. Much of the domestic interest in canola came from processors located in western Canada and in response to very profitable crush margins, brokers said. Adding to the support in canola were ideas that China could be looking to pick up some additional quantities of Canadian canola in view of that country’s recent purchase of US soybeans, traders said. Commodity fund buying was evident in canola periodically during the session which also helped to prop up prices, traders said. Profit-taking near the close helped to temper some of the price gains in canola as did some late day hedge selling by elevator companies, brokers said. There were an estimated 13,541 canola contracts traded during Wednesday’s session, down from 16,512 during the previous session. Of the contracts traded Wednesday, 11,050 were spread related. Western barley futures were higher with the two nearby contracts finding support from sentiment that the sell-off seen on Tuesday was overdone, traders said. Spreading was a minor feature of the trade in barley with commercials seen on both sides of the activity. An estimated 169 barley contracts changed hands during the session. On Tuesday, 2,480 barley contracts were traded. Of the contracts traded Wednesday, 64 were spread related. Prices are in Canadian dollars per metric ton. Settlement Western Barley May $135.00 up $ 9.40 |
