ICE Canada Review: CBOT Soyoil Bolsters Canola
| 2 min read
| By Dwayne Klassen, Resource News International |
| February 8, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session on the plus side of the market with strength associated with the gains seen in the CBOT soybean complex and on the weakness in the Canadian dollar, market watchers said.
Some position evening ahead of the USDA supply/demand reports that will be released Tuesday morning was a feature of the activity. Good volume totals were posted in canola on Monday with brokers suggesting that some commodity funds had begun to roll out of the nearby March contract and into the May future a bit earlier than normal. Canola moved higher with the advances in CBOT soybeans and soyoil encouraging the gains. The firm price tone seen overnight in Malaysian palm oil and European rapeseed futures had also provided some support for canola. Gains were also coming from an improvement in domestic crusher demand and the refusal of producers to deliver canola into the cash pipeline, traders said. Talk of some fresh export demand helped to underpin values with routine pricing of old export sales also keeping a firm floor under the market. Exporters, however, were unable to confirm any fresh Canadian canola sales. Supportive chart signals also generated support for canola. The upside in canola was being limited by the large global oilseed supply situation and bouts of profit-taking at the highs. There were an estimated 20,049 canola contracts traded Monday, up from 12,957 during the previous session. Of the contracts traded, 14,184 were spread related. Western barley futures were steady to higher with the gains in CBOT corn and some light commercial demand giving values a small price boost, brokers said. There were 50 barley contracts that changed hands during the session. On Friday, no barley contracts were traded. Prices are in Canadian dollars per metric ton. |
