ICE Canada Review: Export Talk Lifts Canola
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| January 27, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session with advances, with much of the buying encouraged by talk of fresh export business being put on the books and by the firm price tone displayed by the CBOT soybean complex, market watchers said.
Canola futures traded on both sides of the plus/minus line during the day before managing to hold higher levels heading into the close. Some of the up and down price movement experienced by canola was influenced by the price trend seen in CBOt soybeans and soyoil, traders said. Canola contracts found some of its support from the gains seen overnight in Malaysian palm oil and on talk of fresh export business being put on the books. Exporters were able to confirm that Canadian canola was sold to Dubai, but quantities, shipping details and prices were not available. The buying back of previously sold positions by a variety of market players also helped to fuel some of the rally. There was some forward pricing of canola by producers, but the selling interest was not enough to keep values on the defensive. Some early weakness in the nearby canola contracts was also tied to the rolling of positions by the large index funds, brokers said. Spreading was a feature of the activity in canola and helped to augment the volume total. There were an estimated 22,313 canola contracts traded Thursday, up from the 16,208 contracts that changed hands during the previous session. Of the contracts traded, 13,830 were spread related. Western barley futures were unchanged and untraded Thursday. On Wednesday, no western barley contracts changed hands.
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