ICE Canola Lifted By Export Demand
| 2 min read
By Don Bousquet
By Don Bousquet, Resource News International |
Oct 27, 2009 |
Winnipeg – Grain and oilseed futures on ICE Canada Futures closed Tuesday’s session mixed with canola higher on export demand, brokers said. The canola volume was moderate with intermonth spreading enhancing the activity. The total canola volume was estimated at 13,679 contracts, up from Monday’s 11,064 contracts. Canola was mixed in the overnight session reflecting a choppy mixed tone in international vegetable oil markets. Canola continued to see mixed prices as the North American trading session opened. However canola them turned higher, ignoring weakness in the Chicago soy complex. Canola ended higher. Canola was supported by the weak Canadian dollar and talk of fresh export demand from Japan and Mexico, traders said. Slow farmer selling, friendly technical signals and further delays in harvesting western Canada also gave support. Weather forecasters are calling for wet and snowy conditions into next week in much of western Canada. Traditionally, winter sets into western Canada early in November. As much as 20% of the canola crop is felt to be unharvested, said analysts. Capping the gains were the moderate declines in Chicago Board of Trade soy complex futures and the lingering uncertainty surrounding canola export sales to China, said traders. Some exporters indicated that some fresh demand is coming forward on the problems of making export sales to China as some buyers feel the market has become undervalued. Exporter buying was augmented by crusher pricing and commodity fund short covering. The selling is coming from commercials and commission houses. Western barley ended little changed in light trade. The Nov contract was lifted by continued short covering ahead of the contract becoming deliverable next week. The weak tone in CBOT corn pressured prices down but was offset by slow farmer selling and increased feed lot demand which accounted for the unchanged tone, brokers said. The total barley volume was estimated at 152 contracts, down from 201 contracts on Monday. Prices are in Canadian dollars per metric ton: |
Price | Change | ||
Canola | |||
Nov | 386.20 | up 4.50 | |
Jan | 392.40 | up 3.80 | |
Mar | 399.20 | up 3.90 | |
Western Barley | |||
Nov | 164.50 | up 2.50 | |
Jan | 157.00 | unch |