ICE Canola Contracts Up As Funds Cover Shorts
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 29, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels at midday with the buying back of previously sold positions by commodity fund accounts generating a good portion of the upward price action, market watchers said.
The need to cover shorts was influenced by the upward price action seen in canola due to the rally in CBOT soybean and soyoil values, brokers said. The absence of farmers delivering into the cash market contributed to the price strength displayed by canola. The selling of canola options and the buying of canola futures, also helped to propel canola values to higher ground, traders said. The upside in canola was limited in part by the upswing in the value of the Canadian dollar. The arrival of much needed precipitation across the growing areas of Western Canada was also an undermining price influence. The moisture was seen replenishing previously dry regions of the Canadian prairies. The potential for canola area in western Canada to topple currently forecasted record levels also continued to limit the upside in canola. Spreading was also a feature of the activity in canola and helped to augment the volume total. There were an estimated 9,213 canola contracts traded at 10:59 CDT. There were no western barley futures traded as of 10:59 CDT. |
