ICE Canada Review: Strong demand bolsters canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 20, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Wednesday’s session with strong advances. Support in canola was associated with strong end-user demand as well as by the sharp advances experienced by the CBOT soybean complex, market watchers said.
Canola contracts had traded higher overnight in reaction to some follow through buying from Tuesday’s strong close, brokers said. Gains in the outside oilseed markets overnight helped to fuel some of the upward price momentum in canola early in the day. The advances in canola were amplified by solid demand from the domestic sector. Routine pricing of old export business by commercial accounts added to the upward price action as did rumours that fresh export demand has surfaced for Canadian canola, traders said. Confirmation of new business, however, was not available. Fresh speculative buying, tied to supportive chart signals, further underpinned canola futures. A slow down in the level of hedge offers from elevator companies also provided canola futures with a firm price floor to work with. Profit-taking and an upturn in the value of the Canadian dollar did slow the price gains seen in canola. Sentiment that canola was reaching overbought price levels also tempered some of the buying interest. There were an estimated 25,439 canola contracts traded Wednesday, up from the 22,498 contracts that changed hands during the previous session. Western barley futures were unchanged and untraded Wednesday. On Tuesday no western barley contracts were traded.
|
