ICE Canada Review: Canola Turns Higher On CBOT Soyoil Gains
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 1, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session mostly higher with prices turning up late in the day in response to the advances seen in CBOT soyoil values, market watchers said.
The buying back of previously sold positions by a variety of market participants ahead of the three day holiday weekend also contributed to the late advances seen in canola, traders said. The ICE Canada trading platform will be closed April 2 for the Good Friday holiday. Canola contracts traded on both sides of the plus/minus line during the day. Early losses were fueled by the strong Canadian dollar and the continued decline in domestic demand given the downward push on crush margins, brokers said. Steady hedge selling by elevator companies helped to weigh on values with some end-of month liquidation by a variety of market players adding to the bearish price atmosphere. The record large global oilseed supply situation and the prospects of higher than expected canola acreage in western Canada this spring helped to weigh on prices earlier in the session, brokers said. Support in canola came from steady commercial demand, most of which was believed to be the pricing of old export business to Japan. Much of the early selling also dried up near the close, allowing canola to gain some upward price momentum, brokers said. There were an estimated 14,675 canola contracts traded Thursday, down from 20,736 during the previous session. Of the contracts traded, 9,372 contracts were spread related. Western barley futures were unchanged and untraded in non-existent activity. No barley contracts changed hands during the session. On Wednesday, no barley contracts were traded. |
