ICE Canada Review: Dryness Concerns, Soybeans Lift Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 29, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session higher with gains a reflection of dryness concerns and the advances posted by CBOT soybean complex values, market watchers said.
A good portion of the volume seen in canola was linked to index funds rolling out of the nearby May contract and into the July future. Some position evening ahead of Wednesday’s prospective plantings report from the USDA was also a feature. Canola contracts traded at higher levels for the duration of the session with good support being encouraged by the advances seen in CBOT soybean and soyoil values, traders said. Increased concern about the dry soil conditions in parts of Alberta and Saskatchewan heading into spring seeding also helped to bolster values. Some support in canola also came from steady domestic crusher demand and from the steady pricing of old export business by commercials. The buying back of previously sold positions also generated some of the upward price momentum, brokers said. The gains in canola were limited by light hedge selling by grain companies and by the strong Canadian dollar. The record large South American soybean supply situation also helped to restrict the price advances. There were an estimated 20,431 canola contracts traded Monday, up from 14,483 during the previous session. Of the contracts traded, 12,834 contracts were spread related. Western barley futures were unchanged and untraded in non-existent activity. No barley contracts changed hands during the session. On Friday, no barley contracts were traded. |
