ICE Canada Grain/Oilseed Review: Exports Lift Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 4, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished the session mixed with much of the support in the nearby months coming from steady commercial demand and ongoing talk of fresh export business with China, market watchers said.
Continued firmness in the canola cash market, with producers refusing to deliver, also helped to bolster futures during the session, brokers said. Helping to contribute to the upward price action were the advances seen in the overseas vegetable oil markets overnight and the strength displayed by CBOT soybean and soyoil values during the North American day session, traders said. Steady demand from domestic processors fueled some of the buying interest as did some short-covering by local and fund accounts, brokers said. The upside in canola was limited by the large amounts of unpriced canola sitting on-farms in western Canada and the large crop prospects heading into the new crop year for canola, traders said. Firmness in the Canadian dollar also helped to trim some of the upside price potential. There were an estimated 14,916 canola contracts traded during Wednesday’s session, down from 20,098 during the previous session. Of the contracts traded Wednesday, 11,584 were spread related. Western barley futures were steady to higher with gains in CBOT corn and light commercial demand fueling the upward price action, brokers said. Commercials were also the featured sellers. An estimated 71 barley contracts changed hands during the session. On Tuesday, 146 barley contracts were traded.
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