ICE Canada Review: Canola Closes Lower As Rally Fizzles
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 21, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Wednesday’s session mainly lower after trading at higher levels for a good part of the day. The lack of follow-through buying and the declines posted in CBOT soyoil futures helped to generate the late downward price slide in canola, market watchers said.
Spreading by commercial accounts played a big part of the volume total that was seen in canola during the session. Some evening up of positions ahead of Monday’s first acreage survey for the 2010 season from Statistics Canada was a feature of the activity. Gains in canola for a good part of the session were influenced by the double-digit advances posted by CBOT soybean values, traders said. The buying back of previously sold positions by a variety of market participants also helped to push some canola contracts higher. Scale-up pricing of old export business by commercials, also generated some of the upward price action. The advances in canola were eroded by the drop off in demand from domestic crushers and by the lack of fresh export business being put on the books. Much of that was attributed to the Canadian dollar trading above parity with the US currency, brokers said. Light, but steady levels of elevator company hedge selling also restricted the upside in canola as did indications producers in western Canada will seed record levels of the crop this spring. The large global oilseed supply situation also continued to undermine values, brokers said. There were an estimated 18,822 canola contracts traded Wednesday, down from 19,656 during the previous session. Western barley futures were untraded and unchanged Wednesday. No barley contracts changed hands during the session. On Tuesday, no barley contracts were traded. |
