ICE Canola Contracts Climb As CBOT Soybeans Rally
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| February 25, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels with the sharp advances experienced by CBOT soybean and soyoil values generating the upward price momentum, market watchers said.
Both CBOT soybean and soyoil values had moved up their respective daily trading limits at some point. Oversold market conditions helped to bolster canola as did a decline in panic selling by canola producers, brokers said. Some of the upward price action was stimulated by the buying back of previously sold positions by a variety of market players and some fresh demand from domestic processors, traders said. The pricing of old export business to Japan by commercial accounts helped to influence the price advances seen in canola. Fresh speculative demand was also seen entering canola, which further underpinned the commodity, traders said. The upside in canola was being limited by the firmness seen in the value of the Canadian dollar and by the continued absence of fresh export demand being put on the books, traders said. Activity in canola was described as extremely volatile with spreading again providing a good chunk of the volume total. There were an estimated 12,400 canola contracts traded at 10:32 CST. Of the contracts traded, 6,290 were spread related. There were no western barley futures traded as of 10:32 CST.
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