Nearby ICE Canola Contracts Up On CBOT Sybn Rally
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 21, 2010 |
| Winnipeg – The nearby May and July canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with some of the strength associated with the double-digit advances in CBOT soybean values, market watchers said.
Activity in canola was described as volatile with spreading a key feature of the trade and behind most of the volume total. Some evening up of positions ahead of Monday’s first acreage survey from Statistics Canada was also a feature of the canola activity. The buying back of previously sold positions helped the nearby canola contracts push upwards. Oversold price sentiment was also generating some strength, brokers said. Scale-up commercial exporter pricing was evident which helped to bolster values. The pricing was covering old canola export business to Japan, traders said. The upside in canola was limited by estimates calling for record sized canola acreage this spring, brokers said. An improvement in weather conditions for spring seeding was helping to keep the upside in canola in check, they said. Light, but steady levels of elevator company hedge selling was also putting some downward pressure on canola values, traders said. The strong Canadian dollar was also helping to reduce domestic crusher demand in canola and sidelining fresh export business, brokers said. There were an estimated 9,897 canola contracts traded at 10:42 CDT. Of the contracts traded, 7,100 were spread related. There were no western barley futures traded as of 10:42 CDT. |
