ICE Canada Review: Canola Bolstered By Export Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session higher with much of the upward price momentum associated with the talk of fresh export business being completed, market watchers said.
Position evening ahead of the weekend and next week’s latest round of supply/demand tables from the USDA was a feature of the activity. Pakistan was said to have purchased a couple of cargoes of Canadian canola earlier this week, but there were again reports of additional Canadian canola being sold to another destination, brokers said. Confirmation from export sources was not available. Steady domestic processor demand along with reluctant farmer selling also helped to generate some support in canola, traders said. The late upturn in CBOT soybean and soyoil futures near the close also contributed some minor support to canola. The upside in canola was limited by the advancing harvest of a record sized soybean crop in South America, brokers said. The potential for increased canola area in western Canada and higher US soybean acreage, also helped to restrict the price advances, brokers said. Speculative fund accounts were some of the featured sellers of canola during the day. There were an estimated 9,197 canola contracts traded Friday, down from 12,388 during the previous session. Of the contracts traded, 3,826 contracts were spread related. Western barley futures were steady to slightly higher with only the deferred December contract experiencing any kind of trade. Light commercial demand in the absence of sellers provided the support, brokers said. There were 10 barley contracts that changed hands during the session. On Thursday, no barley contracts were traded. |
