ICE Canada Review: Canola Gains As Prices Catch-Up
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| July 4, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished with advances Monday. Much of the upward price action seen in canola was a ‘catch-up’ play to the advances seen in the CBOT soybean complex on Friday, July 1, when Canadian markets were closed for the Canada Day holiday, market watchers said.
Sentiment that CBOT soybean values could start a bit firmer with Tuesday’s North American session also influenced some minor buying interest, brokers said. Some of the early advances in canola came on the heels of the advances seen overnight in Malaysian palm oil and European rapeseed futures. Adding some support to canola were ongoing concerns about how many acres of canola have been lost to the constant flooding and continued wet conditions in the eastern regions of Saskatchewan and western Manitoba, traders said. Light commercial demand, believed to be covering domestic crusher needs and the pricing of old export business to Japan, further underpinned canola futures. The relatively slow pace of farmer deliveries into the cash pipeline also provided some underlying support for values, brokers said. The upside in canola was offset by the continued strong Canadian dollar and the absence of fresh export business. Sentiment that the canola that is in the ground on the Canadian prairies was developing under favourable weather conditions also restricted some of the upward price movement. Spreading was a small feature of the activity, but still helped to augment the volume total. There were an estimated 4,297 canola contracts traded Monday, down from the 11,917 contracts that changed hands during the previous session. Western barley futures were unchanged and untraded Monday. |
