ICE Canada Review: Canola Climbs On Short-Covering
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 21, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session mainly higher with the buying back of previously sold positions by a variety of market participants behind the price advances, market watchers said. The absence of willing sellers, particularly speculators and commodity funds, helped to augment the gains seen in canola.
Adding to the support in canola was steady export demand, with Canada’s canola export pace matching last year’s level despite China being out of the market, traders said. The weak Canadian dollar added some support, as the pull-back in the currency attracted fresh export demand for canola, brokers said. The gains in CBOT soybeans and soyoil helped to push canola futures upwards as did the overnight advances seen in Malaysian palm oil futures. Elevator company hedge selling was evident, but the sales were not strong enough to put canola on the defensive, traders said. Steady demand from domestic crushers also contributed to the strength displayed by canola futures. The upside in canola was limited by bearish chart signals and the huge world oilseed supply situation. There were an estimated 9,404 canola contracts traded Thursday, up from 7,266 during the previous session. Of the contracts traded, 3,146 were spread related. Western barley futures were steady to fractionally weaker as light commercial selling, due in part to reduced end-user demand, accounted for the downward price action, brokers said. An estimated 115 barley contracts changed hands during the session. On Wednesday, no barley contracts were traded. |
