ICE Canada Review: Fresh Demand, Supply Concerns Aid Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 14, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session with advances. Much of the upward price momentum in canola came from the triggering of fresh speculative interest, which was spurred in part by concerns about tight global oilseed supplies, market watchers said.
The strength displayed by CBOT soybean and soyoil values Thursday also helped to encourage the speculative demand, brokers said. Additional support in canola was attributed to the uncertainty about production in western Canada despite the favourable weather which was promoting a quick harvest pace. The dry conditions for the soybean crops in Argentina and Brazil also continued to influence some support. Aggressive domestic for canola from the domestic processing sector further augmented the price advances in the commodity. Canada’s domestic crush pace was said to be well ahead of last year’s level, analysts said. Some minor chart-related buying added to the friendly price atmosphere in canola. Early strength in canola had come from the advances posted by Malaysian palm oil and European rapeseed futures overnight. The upside in canola was limited by firmness in the Canadian dollar, which was helping to scare off fresh export demand, brokers said. Ongoing harvest operations and the steady level of farmer deliveries of canola into the cash pipeline also helped to restrict some of the price strength seen in the commodity. The rolling of positions by fund accounts from the November canola contract into the January future was a feature of the activity seen in the commodity. There were an estimated 21,375 canola contracts traded Thursday, down from the 24,020 contracts that changed hands during the previous session. Western barley futures were unchanged and untraded Thursday. On Wednesday 3 western barley contracts were traded. |
