ICE Canada Review: CBOT Soybean Rally Aids Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 11, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session with advances after trading on both sides of the plus/minus line during the day. The late upward push in canola came as CBOT soybean and soyoil futures rallied strongly near the close, market watchers said.
Ongoing uncertainty about the wet weather and the impact on canola production in western Canada helped to fuel some of the upward price momentum, brokers said. The excess moisture situation was expected to cause between 8.0 million and 12.5 million acres of Canadian prairie farmland to be left unseeded in 2010, according to a Canadian Wheat Board industry briefing Friday. Market participants anticipated that a good portion of that area will consist of canola. Steady domestic crusher demand and the pricing of old export business to Japan helped to encourage some of the buying interest. A late day downturn in the value of the Canadian dollar also helped to underpin canola, traders said. Oversold market conditions helped to limit the upside in canola as did profit-taking ahead of the weekend, brokers said. Steady elevator company hedge selling helped to undermine some contracts. The unloading of July canola contracts in favour of the November future was a feature of the activity and helped to augment the volume total in canola, traders said. There were an estimated 25,587 canola contracts traded Friday, down from the 27,692 contracts during the previous session. Of the contracts traded, 17,132 were spread related. Western barley futures were unchanged Friday with no contracts changing hands On Thursday no barley contracts were traded.
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