ICE Canada Review: Fresh Demand Buoys Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Wednesday’s session with good advances with much of the upward momentum associated with the pull-back in the value of the Canadian dollar and an improvement in demand, market watchers said.
Activity was choppy with spreading accounting for a portion of the volume total. Canola contracts pushed higher in reaction to a pick up in domestic crusher demand and the pricing of old export business to Japan by commercials, traders said. The buying back of previously sold positions by a variety of market players helped to bolster canola values as did a slow down in the level of hedges issued by grain companies, traders said. Strength in CBOT soyoil values added to the supportive price tone in canola. The upside in canola was limited by the improved growing conditions for crops in western Canada due to recent precipitation and to the good planting pace of the US soybean crop. Some light profit-taking was also evident and helped to restrict the price advances. There were an estimated 13,006 canola contracts traded Wednesday, up from 5,377 during the previous session. Of the contracts traded, 4,280 consisted of spreads. Western barley futures were untraded and unchanged Wednesday. No barley contracts changed hands during the session. On Tuesday, no barley contracts were traded. |
