ICE Canola Climbs In Catch Up Play
| 1 min read
ICE Canola Climbs In Catch Up Play |
| By Dwayne Klassen, Resource News International |
| December 29, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at a firmer price level at midday with some of the upward price action tied to the gains seen in the CBOT soybean complex when Canadian markets were closed for a holiday, industry sources said. Activity was described as thin holiday trade.
"Much of the early advances posted by canola were more of a catch-up to the strong advances posted by CBOT soybeans and soyoil on Monday," a trader said. He felt exporters and domestic crushers were some of the featured buyers of canola early in the session. Helping to bolster canola futures were the absence of willing sellers. "There has been next to no producer offerings, and as a result, buyers are having to push prices up in order to get fills," a broker said. Some of the support in canola was also being tied to signs the Canadian dollar’s strength was beginning to ease. Traders said the Canadian currency was still firm, but off the highs established early Monday. The upside in canola was being limited by the declines being experienced by CBOT soybean and soyoil futures Tuesday, brokers said. The evaporation of the buying that surfaced early in canola was also slowing the upward price action in the commodity, traders said. There were an estimated 5,498 canola contracts traded at 10:41 CDT. Of the contracts traded 1,392 were spread related. There were 102 western barley futures traded as of 10:41 CDT. Of the contracts traded, all were spread related. The liquidation of the January contract by commercials into the March future accounted for the bulk of the action, brokers said. |
