ICE Canada Review: Short-Covering Bolsters Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished with small advances Wednesday with much of the upward price action associated with the buying back of short-positions as well as to the gains seen in CBOT soybeans, market watchers said.
Outright commercial liquidation orders accounted for much of the downward price action seen in canola for most of the day, brokers said. The rolling of positions by commodity funds from the March canola future and into the May contract helped to bolster the volume total. Canola traded at mainly lower levels for most of the day with selling coming from commercials and speculative accounts. The absence of fresh export demand and the large domestic canola supply also prompted selling, brokers said. The pending record large harvest of soybeans in Brazil and Argentina also weighed on values. Some chart related selling was also evident and helped to undermine prices. The losses in canola were also tied to the weakness displayed by CBOT soyoil. However, the buying back of previously sold positions provided some support for canola as did some light domestic crusher demand. The gains in CBOT soybeans also generated the upward price action seen in canola near the close. There were an estimated 14,021 canola contracts traded Wednesday, down from 18,098 during the previous session. Of the contracts traded, 8,364 were spread related. Western barley futures were little changed with the lack of fresh fundamentals keeping market players on the sidelines. There were no barley contracts that changed hands during the session. On Tuesday 51 barley contracts were traded. |
