ICE Canada Review: Canola Rallies In Catch-Up Play
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 2, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished higher Friday with much of the buying interest in the commodity spurred on by the advances seen in CBOT soybeans on Thursday when the Canadian markets were closed for a holiday, market watchers said.
Activity across the board was described as "horrendous" by some participants, with some Canadian market players extending the Canada Day holiday. Market players were also hesitant to establish new positions ahead of the US long holiday weekend. US markets will be closed on Monday, July 5, as the July 4 holiday is extended. The firm price tone seen in CBOT soybean and soyoil values today also helped to bolster canola futures. The slow pace of farmer selling into the cash market and steady domestic crusher demand further underpinned canola values, brokers said. Uncertainty surrounding the crop conditions for canola moving forward also helped to keep a weather premium built into prices. The buying back of previously sold positions was also evident and contributed to the advances seen in canola, traders said. The gains in canola were limited by overhead technical resistance. Some profit-taking ahead of the weekend also restricted the price advances seen in canola. Spreading was seen as only a minor feature of the activity in canola. There were an estimated 5,326 canola contracts traded Friday, down from the 9,913 contracts that changed hands during the previous session. Of the contracts traded Friday, 896 were spread related. Western barley futures were unchanged and untraded. On Wednesday, no barley contracts changed hands |
