ICE Canada Review: Soybean Losses Trim Canola Gains
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session mainly higher although values were pushed off the highs of the day by the late downturn in both CBOT soybean and soyoil values, market watchers said.
Much of the early upward price action in canola came from the advances seen in the outside commodity markets, especially CBOT wheat futures, analysts said. Canola contracts shot sharply higher early in the day on the limit up gains seen in US wheat futures and as the CBOT soybean complex began to follow suit, brokers said. The triggering of buy stop orders helped to amplify the price advances seen in canola as commodity fund accounts were some of the featured early buyers. The advances in canola were helped along by the need to keep a weather premium built into prices given the uncertainty regarding production in western Canada. Ongoing issues with the growing conditions in Europe’s rapeseed producing regions also kept a firm floor under canola. Some of the support in canola also came from a slow down in farmer deliveries into the cash pipeline. Steady domestic crusher demand was also an underpinning price influence. The advances in canola were trimmed significantly by bouts of profit-taking and as soybeans in Chicago also moved off their highs of the day. The downturn in CBOT soyoil contributed to the late pull-back in canola futures. There were an estimated 13,847 canola contracts traded Thursday, up from the 6,858 contracts that changed hands during the previous session. Western barley futures were bid higher although no contracts changing hands on Thursday. On Wednesday, no barley contracts were traded. |
