ICE Canada Review: Canola Up as CBOT Soybeans Rally
Dwayne Klassen, Commodity News Service Canada
| February 25, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session with strong advances with much of the upward price momentum stimulated by the gains experienced by CBOT soybean and soyoil values, market watchers said.
Both CBOT soybean and soyoil values had moved up their respective daily trading limits at one point during the session. The buying back of previously sold positions by a variety of market participants ahead of the weekend also contributed to the price strength seen in canola, traders said. Additional support in canola came from the pricing of old export business to Japan by commercial accounts and renewed domestic processor demand, brokers said. A slow down in the delivery of canola into the cash pipeline by western Canadian producers also fueled some of the upward price action. Fresh fund demand also surfaced, helping to underpin canola futures. The upside in canola was limited by the upswing in the value of the Canadian dollar and by the absence of fresh export demand. Activity was described as volatile with a good chunk of the volume total tied to spreading by commodity fund accounts. There were an estimated 24,599 canola contracts traded Friday, down from the 24,721 contracts that changed hands during the previous session. Of the contracts traded, 15,554 were spread related. Western barley futures were untraded Friday with no contracts changing hands |
