ICE Canada Review: Weak C$ Lifts Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 11, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished the session higher with the pull-back in the value of the Canadian dollar and some steady demand helping to push prices up, market watchers said.
Position evening ahead of the weekend was a feature of the activity. The weak Canadian dollar sparked some fresh speculative demand with routine export business also helping to encourage the advances in canola, brokers said. The reluctance of producers to deliver canola into the cash pipeline amid extremely cold temperatures across western Canada also aided the upward price momentum. Light chart based buying was also an underpinning price influence. The weakness displayed by some CBOT soybean futures tempered the advances seen in canola, although the gains in CBOT soyoil were supportive, traders said. The rolling of positions by commercials out of the nearby January and into the next month was a key feature of the activity and helped to augment the volume total. There were an estimated 20,975 canola contracts traded during Friday’s trade, up from 19,630 during the previous session. Of the contracts traded, 18,940 were spread related. Western barley futures were mainly lower in extremely choppy activity. The lack of fresh end user demand allowed values to drift down, brokers said. The realigning of positions by commercial accounts provided much of the price action seen in barley. Only 47 barley contract changed hands during the session. On Thursday, 240 barley contracts were traded. Of the contracts traded Friday, 20 were spread related. |
