ICE Canada Review: Canola Advances On CBOT
Strength |
| By Dwayne Klassen, Commodity News Service Canada |
Winnipeg - Canola contracts on the ICE
Futures Canada trading platform finished Friday's session
mainly higher with support derived from the advances posted in
the CBOT soybean complex and on steady demand from the
commercial sector, market watchers said.
Canola values followed CBOT soybean and soyoil values
upwards, but early buying had been influenced by the gains
seen overnight in Malaysian palm oil and European rapeseed
futures, traders said.
The buying back of previously sold positions helped to
generate some early support in canola as did news that the
soybean crops in Brazil and Argentina were reduced by dry
growing conditions, brokers said.
Steady demand from domestic crushers and the pricing of
routine export business to Japan by commercial accounts
further generated price strength, traders said. There were
rumours circulating in the market that some fresh Chinese
demand for Canadian canola was being conducted, but
confirmation was not available.
Stocks of Canadian canola on farm and in commercial
positions as of December 31, 2011, were pegged at 9.294
million metric tons by Statistics Canada Friday morning.
That's down slightly from 9.434 million at the same point the
previous year. With Canada starting the year with a much
larger crop to begin with, the confirmation of solid end-user
demand was seen as supportive. However, market participants
said the tightening supplies were already priced into the
futures.
The upside in canola was restricted by profit-taking ahead
of the weekend and by the upswing in the value of the Canadian
dollar.
Elevator company hedge selling, tied to steady farmer
deliveries of canola into the cash pipeline, also tempered
some of the upward price action.
Spreading was again a big part of the volume total seen in
canola.
There were an estimated 37,156 canola contracts traded
Friday, up from the 18,621 contracts that changed hands during
the previous session. Of the contracts that traded, 33,172
were spread related.
There were no western barley, milling wheat, durum or new
barley contracts traded during the session.
Prices are in Canadian dollars per metric ton. |
Settlement
| | | Price | s Change |
| Canola | | | Mar | 526.50 | up 2.80
| | | May | 529.40 | up 2.00
| | | Nov | 512.90 | up 0.90
| | | | Western Barley | | | Mar | 212.00 | unchanged
| | | May | 216.00 | unchanged
Milling Wheat | | | Oct | 264.50 | unchanged
| | | Dec | 269.00 | unchanged
Durum | | | Oct | 270.00 | unchanged
| | | Dec | 274.50 | unchanged
Barley | | | Oct | 180.50 | unchanged
| | | Dec | 184.00 | unchanged
END |
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