ICE Canola Up On US Soy, Loonie Limits Gains
| 2 min read
By Don Bousquet
| By Don Bousquet, Resource News International |
| Oct 6, 2009 |
| Winnipeg – Grain and oilseed futures on ICE Canada Futures closed Tuesday’s session higher with canola lifted by the strong upward surge in the Chicago Board of Trade soybean market as the gains in the Canadian dollar restrained the advance, brokers said. Canola saw a moderate trade with heavy intermonth spreading noted as commodity funds were moving Nov contracts forward, traders said. The total canola volume was estimated at 11,739 contracts, up from Monday’s 11,073 contracts, including an estimated 6,384 contracts involved in the spread trade. Canola saw small gains in the overnight market in response to advances in international vegetable oil prices. Canola extended its gains as the North American trading session opened and the CBOT soy complex posted a larger than expected rally, traders said. Canola ended modestly higher. Canola drew the bulk of its support from the big gains in the US soy complex and on a slower pace to farmer selling as rain has hampered the final harvest activity in many parts of western Canada. An improved technical outlook also helped to encourage canola. Ideas that canola was oversold, as it hit its lowest level in 12 months, contributed to the gains. The advances in canola were much smaller than the rally in the US market as the very strong Canadian dollar weighed on prices. The dollar hit its highest level against the US currency in a year on Tuesday. Also maintaining the bearish stance was the expectations for a large canola crop as yields continue to support production forecasts of 11-11.5 mln metric tons, compared with last week’s Statistics Canada crop forecast of 10. 2mln tons. Japanese buying was augmented by exporter demand and crusher buying interest. There was some small speculative short covering noted as well. The selling was mainly commercial with elevator companies steady, but not heavy, sellers, analysts said. Western barley closed steady to a bit higher in moderate trade as the rally in CBOT corn and slow farmer selling forced end users to take the market up, brokers said. End users were noted buying right across the winter and early spring contracts. The total barley volume was estimated at 280 contracts, up from just 1 contract traded on Monday. Prices are in Canadian dollars per metric ton: |
| Price | Change | ||
| Canola | |||
| Nov | 373.50 | up 2.30 | |
| Jan | 379.00 | up 2.80 | |
| Mar | 383.40 | up 2.70 | |
| Western Barley | |||
| Nov | 151.00 | up 1.40 | |
| Jan | 157.60 | unch | |
