ICE Canada Review: Canola Mixed, Steady Demand Supportive
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 7, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session in a narrowly mixed range. Strength was drawn from steady demand while firmness in the Canadian dollar sparked some liquidation orders from a variety of participants, market watchers said. Activity in canola was described as volatile.
Some evening up of positions ahead of the weekend and Monday’s grain stocks in all positions report from Statistics Canada was a feature of the trade. Canola contracts found some of its support from the steady demand from the domestic crushing sector and from the pricing of old export business to Japan by commercials, brokers said. Some of the early advances in canola had come from the buying back of previously sold positions and from the upward price action experienced in CBOT soybean and soyoil values. Much of the selling in canola came late in the day and as the Canadian dollar regained some of its upward momentum. Light, but steady elevator company hedge selling weighed on canola as did the improved soil moisture conditions in western Canada. Concerns about the turmoil in the outside markets also prompted some late selling interest in canola, brokers said. The inability of canola to penetrate technical resistance was also an undermining price influence. Spreading was a feature of the activity and helped to bolster the volume total. There were an estimated 11,310 canola contracts traded Friday, down from 17,145 during the previous session. Of the contracts traded, 4,800 consisted of spreads. Western barley futures were untraded and unchanged Friday. No barley contracts changed hands during the session. On Thursday, no barley contracts were traded. |
