ICE Canada Review: Export Talk Bolsters Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 17, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Wednesday’s session higher with strong commercial buying interest and the gains seen in the CBOT soybean complex providing much of the upward price momentum, market watchers said.
Strength in the Canadian dollar, which moved to new 20 month highs during the day, limited some of the upside price potential. Canola contracts were higher with much of the commercial interest said to be covering export and domestic crusher needs. Some of the export business was said to be fresh sales, with both Mexico and Pakistan being tossed abut as potential clients by market players, traders said. Export sources, however, were unable to confirm any fresh business. The buying back of previously sold positions helped to generate some of the support as did spill over from the advances experienced by CBOT soybean and soyoil values. Gains overnight in Malaysian palm oil had provided some early support. Traders noted that it didn’t take much in the way of buying to push values up in the thin volumes, with many of the key market players in San Francisco, California for the Canola Council of Canada’s annual convention. The upside in canola was limited by the record large global oilseed supply situation and by light, but steady hedge selling by grain companies, brokers said. There were an estimated 9,753 canola contracts traded Wednesday, down from 10,482 during the previous session. Of the contracts traded, 4,918 contracts were spread related. Western barley futures were little changed in non-existent activity, traders said. There were no barley contracts that changed hands during the session. On Tuesday, no barley contracts were traded. |
