ICE Canada Review: Export Ideas Lift Canola
| 2 min read
| By Dwayne Klassen, Resource News International |
| April 23, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session mainly higher with good support through out most of the day coming from fresh demand from the domestic and export sectors, market watchers said.
Some of the export business was made up of commercials pricing old canola to Japan, but there were also reports that fresh Canadian canola sales to China and/or Pakistan had also been put on the books, traders said. Spreading by commercials accounted for a big portion of the volume total seen in canola. Some evening up of positions ahead of the weekend and Monday’s first acreage survey for the 2010 season from Statistics Canada was a feature of the activity. Early strength in canola came from the advances experienced by Malaysian palm oil and european rapeseed futures overnight. The pull-back in the value of the Canadian dollar helped to encourage some of the fresh demand in canola as well, brokers said. The covering of previously sold positions helped to generate some support in canola as did a slow down in the level of hedge offers from elevator companies. Strength in CBOT soyoil futures also provided good support for canola during the session, brokers said. The upside in canola was limited by the losses seen in CBOT soybeans and the potential for the Stats Can acreage survey to show that producers in western Canada were planning on seeding record area to canola this spring, traders said. Large global oilseed supplies helped to restrict some of the price gains in canola. There were an estimated 26,313 canola contracts traded Friday, up from 18,424 during the previous session. Western barley futures were untraded and unchanged Friday. No barley contracts changed hands during the session. On Thursday, no barley contracts were traded. |
