ICE Canada Review: Canola Follows CBOT Soyoil Up
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Wednesday’s session mainly higher with the rally in CBOT soyoil futures stimulating the upward price momentum, market watchers said.
The buying back of previously sold positions by a variety of market participants was also evident and helped to fuel the price advances seen in canola, traders said. Some early strength in canola came from the overnight advances experienced by Malaysian palm oil futures. Routine exporter pricing as well as steady domestic processor demand also contributed to the gains seen in canola, brokers said. Ongoing speculation about fresh export business being put on the books also was an underpinning price influence. The upside in canola was limited by the firm tone seen in the Canadian dollar during the session and by steady hedge selling by grain companies, traders said. The large global soybean supply situation as confirmed by the USDA Wednesday morning and continued talk of a large jump in the area that will be planted to canola this spring in western Canada also helped to limit the upside price potential. There were an estimated 11,508 canola contracts traded Wednesday, down from 16,345 during the previous session. Of the contracts traded, 6,600 contracts were spread related. Western barley futures were steady to lower with market participants generally refusing to initiate positions in the market given the lack of open interest in the commodity, traders said. There were no barley contracts that changed hands during the session. On Tuesday, no barley contracts were traded. |
