ICE Canada Review: Canola Climbs On Export Ideas
| 2 min read
| By Dwayne Klassen, Resource News International |
| August 16, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session with modest advances as continued talk of fresh export demand and the absence of willing sellers allowed values to be pushed upwards, market watchers said. The rain related harvest delays across western Canada also stimulated some of the price strength seen in canola.
Some of the activity seen in canola during the day consisted of the evening up of positions ahead of the first Canadian crop production survey from Statistics Canada on Friday. Canola contracts had initially moved lower on profit-taking and on the losses seen in CBOT soybean and soyoil values. However, at the lows of the day good commercial demand stepped up and began to take values up. Some of the commercial buying was said to be covering old export sales, but talk of potential new business with either Pakistan or China helped to push values up, traders said. Export sources were unable to confirm any fresh business. Steady domestic crusher demand was also an underpinning price influence. The pull-back in the value of the Canadian dollar was supportive for canola with the buying back of short positions by exporter accounts also adding to the price gains, brokers said. Some elevator company hedge offers were evident early in the canola trade, but that selling also dried up, allowing prices to move to higher ground. The declines exhibited by CBOT soybeans and soyoil did restrict the price advances in canola. Spreading was a minor feature of the activity seen in canola. There were an estimated 13,226 canola contracts traded Monday, up from the 10,352 contracts that changed hands during the previous session. Western barley futures were offered lower with no contracts changing hands on Monday. On Friday, 10 barley contracts were traded. |
