ICE Canada Review: Canola Up On Fresh Spec Demand
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 29, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session with modest advances. Fresh speculative buying interest helped to fuel the upward price momentum with a drop off in willing sellers helping to amplify the advances, market watchers said.
Activity for much of the day had been on the lighter side with a number of market participants taking to the sidelines to wait out Friday’s latest production survey results from Statistics Canada and for the rolling of canola positions by the major index fund accounts to get underway, brokers said. Some early support in canola was derived from the advances seen overnight in Malaysian palm oil and European rapeseed futures. Steady domestic crusher demand, amid favourable processing margins, helped to encourage the price gains seen in canola, traders said. The pricing of old export business to Japan and Mexico by commercial accounts also facilitated the upward price action seen in canola. Locals and commission houses were some of the late buyers in canola which helped to augment the price advances. The weakness in the Canadian dollar also influenced some of the upward price momentum. The upside in canola was limited by the absence of fresh export demand and steady hedge selling by elevator companies. The sell-off seen in CBOT soybean futures helped to keep the gains in canola in check, as did sentiment that this Friday’s production report will show higher than anticipated levels of canola output in western Canada. There were an estimated 15,143 canola contracts traded Monday, up from the 9,970 contracts that changed hands during the previous session. Of the contracts traded, 9,632 were spread related. Western barley futures were unchanged and untraded Monday. No western barley contracts changed hands on Friday.
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