ICE Canada Review: Canola Rally Tied To CBOT Advances
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 26, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session mainly higher with much of the upward price momentum encouraged by the advances seen in CBOT soybean and soyoil values, market watchers said.
End of week and month position evening ahead a feature of the activity seen in canola. Helping to underpin canola during the day were the buying back of previously sold positions by speculative accounts with light domestic crusher pricing also adding to the firm price tone in canola, brokers said. Routine exporter pricing of old export business was also an underpinning price influence. The upside in canola was limited by the absence of fresh export demand, with reports early Friday that Pakistan bought 45,000 metric tons of Canadian canola considered old news by market participants. The canola sale to Pakistan was said to have occurred late last week, brokers said. The upside in canola was also limited by the upward rebound in the value of the Canadian dollar. Pre-weekend hedging by commercials also restricted the advances seen in canola, traders said. The large on-farm supply of Canadian canola and the pending record soybean harvest in Brazil and Argentina also continued to be bearish for prices. There were an estimated 10,136 canola contracts traded Friday, down from 11,425 during the previous session. Of the contracts traded, 5,826 contracts were spread related. Western barley futures were slightly higher in very thin trade. Light commercial demand, in the absence of willing sellers, helped to generate support, brokers said. Gains in CBOT corn were also an underpinning price influence. There were 60 barley contracts that changed hands during the session. On Thursday, 20 barley contracts were traded. |
