ICE Canada Review: CBOT Losses Overwhelm Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 25, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session on the defensive after trading in as mixed range for the better part of the day. Much of the downward price momentum in canola came late with the expansion of the declines in CBOT soybean and soyoil futures behind the losses, market watchers said.
Firmness in the Canadian dollar was also an undermining price influence. Canola contracts traded on both sides of the plus/minus line during the session. Much of the early support seen in canola was related to good demand from commercials. Most of that interest was said to be covering domestic crusher needs as well as some routine export business, traders said. The buying back of previously sold positions was also evident during the session and helped to provide some support. Additional strength in canola came from growing concern about the extremely dry conditions for seeding in Alberta and the western half of Saskatchewan, brokers said. Some early advances in canola had also been attributed to the gains posted by Malaysian palm oil and European rapeseed futures overnight. The record large South American soybean crop and continued talk of higher Canadian canola acreage this spring kept the gains in canola in check and in fact helped take some contracts lower by the close. There were an estimated 15,834 canola contracts traded Thursday, up from 10,469 during the previous session. Of the contracts traded, 8,544 contracts were spread related. Western barley futures were little changed in non-existent activity. There were no barley contracts that changed hands during the session. On Wednesday, no barley contracts were traded. |
