DJ ICE Canada Review: Canola Climbs On CBOT Strength 16.08.2011
WINNIPEG (Dow Jones)--Canola contracts on the ICE Futures Canada trading platform finished Monday's session with modest gains.
Strength in the outside oilseed markets encouraged much of the upward price climb although the stabilization of the global financial sector also was an underpinning price influence, industry watchers said.
Canola contracts moved higher early, underpinned by the overnight gains seen in Malaysian palm oil and European rapeseed futures, traders said. The strength displayed by the advances in CBOT soybean and soyoil futures further contributed to the friendly price tone, brokers said.
Additional support in canola came from strong domestic processor demand, especially as crush margins continue to sit at pretty profitable levels. The pricing of old export business by commercials helped to fuel the upward price action, as did some fresh chart-related buying, especially after values set new lows.
The slowdown in the level of farmer deliveries into the cash pipeline also stimulated some buying. The upside in canola was restricted by the favorable weather conditions for the development of the crop. The start of harvest operations in select areas of the Canadian prairies also helped to temper the price climb.
The upswing in the value of the Canadian dollar further limited the advances, brokers said. There were an estimated 8,346 canola contracts traded Monday, down from the 10,818 contracts that changed hands during the previous session. Of the contracts traded, 4,708 were spread-related.
Western barley futures were unchanged and untraded Monday.
Prices are in Canadian dollars per metric ton. Settlement Prices Change Canola Nov 555.50 up 5.30 Jan 563.90 up 5.00 Mar 571.20 up 5.00 Western Barley Oct 205.00 unchanged Dec 205.00 unchanged Spread trade prices are in Canadian dollars and the volume represents the number of spreads: Months Prices Volume Canola Nov/Jan 8.90 under to 8.30 under 1,362 Nov/Mar 15.80 under to 15.50 under 142 Nov/May 21.20 under to 20.20 under 421 Jan/Mar 7.40 under to 7.00 under 164 Jan/May 12.60 under to 11.90 under 115 Mar/May 5.70 under to 4.40 under 118 May/Jul 4.80 under to 3.30 under 32