ICE Canada Review: Canola Rallies As Demand Improves
| 2 min read
| By Dwayne Klassen, Resource News International |
| February 4, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform ended Thursday’s session with strong advances. Gains were influenced by an improvement in demand and on the advances seen in CBOT soyoil futures, market watchers said.
Position evening ahead of Friday’s grain and oilseed stocks in all positions report from Statistics Canada was a feature of the activity. CBOT soyoil futures found support from the Environmental Protection Agency’s announcement on mandates for biofuel. The mandate for biodiesel was seen as favorable for soyoil used for Strength in canola also came from fresh export demand. There were reports that a couple of cargoes of Canadian canola were sold to Mexico late last week and that some fresh canola business was being concluded with another end-user this week, brokers said. Canola had found early support from the advances posted in Malaysian palm oil futures overnight with the slow pace of producer selling into the cash pipeline in western Canada helping to generate some strength, traders said. The buying back of previously sold positions helped canola move up with a small pick up in domestic crusher demand also an underpinning price influence. The gains in canola were limited by the weakness seen in CBOT soybeans during most of the session and by the large global oilseed supply situation. However, when CBOT soybeans began to rally near the close, the advances in canola were amplified. There were an estimated 14,553 canola contracts traded Thursday, down from 17,854 during the previous session. Of the contracts traded, 11,154 were spread related. Western barley futures were higher with the absence of willing sellers and light commercial demand generating the upward price climb, brokers said. An estimated 6 barley contracts changed hands |
