ICE Canada Review: Weak C$ Bolsters Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 23, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session mainly higher with weakness in the Canadian dollar encouraging some fresh buying from a variety of participants, market watchers said. Chart related speculative buying was also a supportive price influence.
The rolling of positions out of the nearby March canola contract and into the May future by commodity funds helped to augment the volume total. Canola values found good support from the buying back of previously sold positions and from continued talk of fresh export business being booked, especially with the Canadian dollar on the defensive, traders said. Steady domestic crusher demand helped to influence some of the advances in canola with the reluctance of producers to deliver into the cash pipeline also helping to encourage the gains, brokers said. The advances posted in CBOT soybeans early in the day also influenced some of the early upward price action, but the downward price slide seen in CBOT soyoil and the subsequent sell-off in soybeans helped to restrict the price advances in canola, traders said. The upside in canola was also limited by the large on-farm supply and the more than ample global oilseed stocks situation. There were an estimated 22,289 canola contracts traded Tuesday, up from 16,344 during the previous session. Of the contracts traded, 18,794 contracts were spread related. Western barley futures were mainly higher with much of the upward price action a function of light commercial demand in the absence of willing sellers, brokers said. There were 20 barley contracts that changed hands during the session. On Monday, 34 barley contracts were traded. |
