ICE Canada Review: Canola Mixed, Demand Helps Nearbys
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| By Dwayne Klassen, Commodity News Service Canada |
| January 28, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session mixed with the nearby contracts up and the deferred values down. Steady demand from the domestic sector provided some of the support in the nearby months while the downturn in CBOT soybean complex encouraged some of the price weakness, market watchers said.
Position evening ahead of the weekend was a feature of the activity in canola. Canola contracts traded in a mixed range for much of the session. Some of the early buying that surfaced in canola came from the advances seen overnight in Malaysian palm oil and European rapeseed futures. Solid advances in CBOT soybean and soyoil values earlier in the day had also encouraged some good buying interest in canola, traders said. Good demand from domestic crushers and the pricing of old export sales also influenced some of the price advances. There were also indications that some new export enquiries were being made about Canadian canola, which also generated some early strength, brokers said. Canola values moved off its highs for the day when CBOT soybean and soyoil futures began to sell off, traders said. Late day profit-taking by a variety of market participants was also an undermining price influence for canola. New crop hedging by producers was also an undermining feature for the deferred canola contracts. Adding to the bearish price sentiment in the deferred contracts was the rolling of positions by the large index fund accounts, brokers said. There were an estimated 16,873 canola contracts traded Friday, down from the 22,313 contracts that changed hands during the previous session. Of the contracts traded, 10,634 were spread related. Western barley futures were unchanged and untraded Friday. On Thursday, no western barley contracts changed hands.
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