ICE Canada Review: Export Ideas Boost Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 14, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session mainly higher with the weak Canadian dollar and talk of fresh export demand stimulating much of the upward price movement, market watchers said.
Some evening up of positions ahead of the weekend was a feature of the activity. Canola contracts found early support from the downswing in the value of the Canadian dollar which was said to have encouraged fresh export business, traders said. There were indications that Canada sold varying amounts of canola to both Pakistan and Mexico earlier this week for an unspecified delivery date. Reports overnight that the Chinese government may relax its import restrictions on Canadian canola also provided some early support, brokers said. In November 2009, China began requiring that import shipments of Canadian canola be declared free of blackleg disease, which is common in Canada. Further strength in canola came from steady domestic processor demand and the slow pace of farmer selling into the cash market. The buying back of previously sold positions by a variety of market players also contributed to the support. The upside in canola was limited by profit-taking at the highs, and by the sell-off seen in CBOT soybeans and soyoil. The optimal weather conditions for the planting and development of the canola crop in western Canada also was an undermining price influence. There were an estimated 11,319 canola contracts traded Friday, up from 6,772 during the previous session. Of the contracts traded, 5,140 consisted of spreads. Western barley futures were untraded and unchanged Friday. No barley contracts changed hands during the session. On Thursday, no barley contracts were traded. |
