DJ ICE Canada Review: Canola Climbs On Weather, Soybean Gains 29.08.2011
WINNIPEG, Manitoba (Dow Jones)--Canola contracts on the ICE Futures Canada trading platform completed Friday's session with significant advances. Strength in canola was derived from ongoing yield concerns in the U.S. soybean belt as well as in the canola-growing regions of the Canadian prairies, market watchers said.
Less concern among global investors regarding the global economy also caused a few investors to resume positioning themselves in commodity markets, which in turn helped CBOT soybeans, and subsequently canola, traders said.
The triggering of buy-stop orders as technical resistance levels were penetrated in a number of canola contracts further enhanced the upward price action seen in the commodity, brokers said.
Steady commercial demand, tied to domestic crusher needs and the pricing of old export business, helped to generate some of the price advances.
The upside in canola was restricted by the upswing in the value of the Canadian dollar and by profit-taking ahead of the weekend. Steady farmer sales of canola into the cash pipeline and the advancing harvest operations on the Canadian prairies also limited the upside price potential.
There were an estimated 16,127 canola contracts traded Friday, down from 16,889 during the previous session.
There were 106 western barley contracts traded during the session.
Some good action was seen in western barley, as commercials were seen readjusting positions and adding a few, brokers said.
Prices are in Canadian dollars per metric ton.
Settlement Prices Change Canola Nov 567.50 up 5.60 Jan 576.00 up 5.50 Mar 584.20 up 5.50 Western Barley Oct 205.00 up 4.00 Dec 207.00 up 2.00
No spread trade breakdown was available