ICE Canola Closes Higher, Short-Covering Supportive

 By Dwayne Klassen, Commodity News Service Canada

Winnipeg – December 24/12 – Canola futures on the ICE Canada

trading platform finished Monday’s abbreviated session on a firmer

footing with the buying back of previously sold positions a supportive

price influence, market watchers said.

Activity in canola was described as being on the extremely light

side, with numerous market participants absent amid the holiday

season. The ICE Canada platform will be closed on Tuesday, December 25

for Christmas and will remain closed on December 26 for the Boxing Day

holiday. Normal trade resumes on Thursday, December 27. US markets

will be closed on Tuesday, December 25, but will resume normal

operations on the Wednesday.

Some of the trade seen in canola during the session was believed

to be positioning for the US markets that will be open on Wednesday,

brokers said. Spreading was a key feature of the volume seen in canola

with few outright trades reported.

Some early strength in canola came from the overnight advances

posted by Malaysian palm oil futures. Strength in CBOT soybean and

soyoil futures on Monday contributed to the price strength, traders


Some of the upward price action in canola was also linked to

carryover from the advances seen on Friday. The pricing of old export

business by commercial accounts and some light domestic crusher buying

interest also added to the friendly price tone seen in canola, brokers


The upside in canola was capped by the favourable weather

conditions for the development of the South American soybean crop.

Firmness in the Canadian dollar and some late day profit-taking also

slowed the price advances in canola.

There were an estimated 9,254 canola contracts traded Monday,

down from the 26,153 contracts that changed hands during the previous

session. Of the contracts that changed hands, 8,480 were spread


No milling wheat, durum or barley contracts were traded.

Prices are in Canadian dollars per metric ton.

Commodity Future Prices

Price Change

Prices are in Canadian dollars per metric ton