ICE Canada Review: Canola rallies on CBOT sybn gains
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 18, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session mainly higher with a late upturn in CBOT soybean futures stimulating the upward price action, market watchers said. Strong domestic crusher demand throughout the day also provided a firm price floor for canola futures.
The buying back of previously sold positions near the close was also an underpinning price influence. Routine pricing of old export business to Japan contributed to the supportive price atmosphere as did the small pull-back in the value of the Canadian dollar, brokers said. Some of the late buying that surfaced in canola was said to have come from speculative accounts. Much of the downward price action seen in canola during the day was linked to aggressive hedge selling by elevator companies as producers continue to be good sellers of canola into the cash pipeline, brokers said. Canola was said to be one of the better cash crops to sell at the moment with producers looking to settle a number of bills that were starting to come due. The favourable weather for the harvest of canola in western Canada added to the bearish price atmosphere. The lack of fresh export demand was also an undermining price influence. Talk that canola yields were a lot better than anticipated, based on early harvested crops, was also an undermining price influence, traders said. Spreading was a feature of the activity in canola and helped to bolster the volume total. There were an estimated 19,123 canola contracts traded Monday, down from the 32,869 contracts that changed hands during the previous session. Western barley futures were unchanged and untraded Monday. On Friday no western barley contracts were traded. |
