ICE Canada Review: Canola Rises On Steady Demand
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session mainly higher with much of the upward price action linked to the pull-back in the value of the Canadian dollar, market watchers said. Elevator company hedge selling ahead of the weekend helped to trim the gains.
Activity was described as volatile with spreading helping to augment the canola volume. Some evening up of positions ahead of the weekend was a feature of the trade. Canola contracts managed to hold mostly higher with fresh domestic and exporter demand, tied to the weakness in the Canadian dollar, generating the support, traders said. Much of the exporter demand was said to be pricing old Japanese business, but there were some market participants who felt that some new business may have come forward, brokers said. The sharp gains overnight in Malaysian palm oil provided some early support for canola while the advances in CBOT soyoil also contributed some strength. The buying back of previously sold positions also offered canola some support. The upside in canola was limited by the large global oilseed supply situation and the arrival of much needed precipitation in some of the growing areas of Alberta and Saskatchewan, brokers said. Sentiment that canola area in western Canada will be record large this spring, also helped to limit the advances. The mixed price tone in CBOT soybean values also slowed the upward price climb seen in canola. There were an estimated 15,754 canola contracts traded Friday, up from 13,621 during the previous session. Of the contracts traded, 10,852 contracts were spread related. Western barley futures were unchanged and untraded in non-existent activity. No barley contracts changed hands during the session. On Thursday, no barley contracts were traded.
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