ICE review: Friendly charts boost canola
Dwayne Klassen, Resource News International
March 23, 2009
Winnipeg – Canola contracts on the ICE Futures Canada platform finished the day mainly higher with some of the upward price momentum encouraged by friendly chart-related speculative buying, market watchers said. Strength in the CBOT soybean complex also prompted some of the advances.
Uncertainty surrounding the global economic outlook helped to create a choppy trading atmosphere.
Canola values found early support from the gains posted by Malaysian palm oil and Matif rapeseed futures, traders said.
Good levels of commercial and commission house buying took canola values up with much of that support spurred on by the advances seen in the CBOT soybean and soyoil values.
Steady domestic crusher demand and routine exporter pricing also favored canola values as did the ongoing tension between the Argentine Government and its soybean producers.
The implementation of spring road bans across much of Western Canada also influenced some of the upward price movement in canola, brokers said.
The upside in canola was limited by profit-taking and by firmness in the Canadian dollar. A late-day pull-back in the gains exhibited by CBOT soybeans also helped to trim the advances in canola as well as pull some months lower, traders said.
There were an estimated 12,874 canola contracts traded during Monday’s session, up from 10,063 during the previous session. Of the contracts traded Monday, 6,640 were spread related.
The nearby western barley contract moved lower with light commercial offerings in the absence of willing buyers allowing values to be pushed lower, traders said.
An estimated 40 barley contracts changed hands during the session. On Friday, 68 barley contracts were traded.
Prices are in Canadian dollars per tonne.
Settlement s
Price Change
Canola
May 420.00 dn 0.80
Jul 424.10 up 1.00
Nov 429.80 up 3.00
Western Barley
May 147.50 dn 3.50
Jul 153.90 dn 3.60
