ICE Canada Review: Canola Up With Exporter, Spec Buying |
| By Phil Franz-Warkentin, Commodity News Service Canada |
Winnipeg - ICE Futures Canada canola contracts
closed higher on Tuesday, boosted by solid export demand and
bullish technical signals.
The fact that canola posted good gains, despite a relatively
softer tone in CBOT soybeans, was seen as a sign of exporter demand,
according to traders. However, market participants were unable to
confirm if the end-user buying was tied to new business or if it
was the pricing of previous sales.
A Canadian government/industry trade mission to China is
currently underway, and news that a Chinese company had reached
an agreement to import more Canadian canola meal was somewhat
supportive for prices, according to participants.
Technical signals were also supportive for canola on Tuesday,
as prices neared the upper edge of their recent trading range.
However, the buying did back away near the highs as profit-taking
was uncovered.
Increasing farmer hedges and the strong Canadian dollar also
tempered the gains in canola.
About 28,574 canola contracts were traded on Tuesday, which
compares with Monday when an estimated 24,929 contracts changed
hands. Spreading was a feature, accounting for 18,828 of the
contracts traded.
Milling wheat futures were narrowly mixed in thin commercial
trade, while durum was steady to lower. Barley futures were
untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton. |
| | | Price | Change |
| Canola | | | Mar | 532.50 | up 2.90
| | | May | 536.20 | up 3.10
| | | Nov | 517.10 | up 1.60
| | | | Western Barley | | | Mar | 212.00 | unch
| | | May | 216.00 | unch
Milling Wheat | | | Oct | 265.00 | up 1.00
| | | Dec | 269.50 | up 1.00
Durum | | | Oct | 269.00 | dn 1.00
| | | Dec | 273.50 | dn 1.00
Barley | | | Oct | 180.00 | unch
| | | Dec | 184.00 | unch |
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