ICE Canola Contracts Mixed, Nearbys Up, Deferreds Down
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 8, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a mixed range at midday with the two nearby contracts up and the remainder of the contracts down. Some of the early strength was associated with the pull-back in the value of the Canadian dollar while the unloading of long positions by speculative accounts helped to weigh on the deferred values, market watchers said.
Some of the early buying in canola was also associated with the advances seen overnight in Malaysian palm oil and European rapeseed values, brokers said. Additional support in the nearby canola contracts continued to come from unprecedented demand from the domestic sector, traders said. They noted that the crush pace for canola was already at record high levels in the 2010/11 (Aug/Jul) crop year, with processors still in the process of ramping up production to meet capacity. The pricing of old export business by commercial accounts was also an underpinning price influence. The weakness in canola was linked to light speculative and fund selling, sparked by the sell-off in CBOT soyoil futures. Overbought market sentiment and profit-taking was also evident, brokers said. There were also ideas that canola yields were better than anticipated and will show up in future updates from Statistics Canada. Activity in canola was described as light and choppy with participants hesitant to take positions ahead of supply/demand reports scheduled to be released by the USDA Tuesday morning. The ICE Futures Canada trading platform will also be closed on Thursday, November 11, in observance of Canada’s Remembrance Day. There were an estimated 2,684 canola contracts traded at 10:25 CST. Of the contracts traded, 400 were spread related. There were no western barley futures traded as of 10:25 CST.
|
