ICE Canada Review: CBOT Soybean Gains Bolster Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session mostly higher with strength encouraged by the advances experienced in CBOT soybean and soyoil values, market watchers said.
The need to keep a weather premium built into canola futures due to the adverse growing conditions across the Canadian prairies also helped to stimulate some of the upward price momentum, traders said. Agriculture Canada’s supply/demand report, which was released late on July 8, also promoted some of the price advances. Traders said the government agency in its production estimate had taken into account unseeded area as well as some of the damage from the excessively wet conditions in western Canada. Ag Canada projected that 10.5 million metric tons of canola will be produced in the 2010/11 (Aug/Jul) crop year, compared to its May prediction of 11.7 million. Steady domestic crusher demand and some pricing of old export business helped to keep a firm floor under canola. The upside in canola heading into the close was tempered by profit-taking by a variety of market participants. A pick up in elevator company hedge selling also took canola futures off their highs for the day, brokers said. The uptrend in the value of the Canadian dollar also restricted some of the price advances in canola. The absence of fresh export demand was also an undermining price influence. Position squaring ahead of the weekend was a feature of the activity seen in canola. There were an estimated 12,175 canola contracts traded Friday, up from the 10,158 contracts that changed hands during the previous session. Western barley futures were bid higher although no contracts changed hands on Friday. On Thursday no barley contracts were traded. |
