ICE Canola Climbs As CBOT Soybeans Rally
| By Dwayne Klassen, Resource News International |
Winnipeg - Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with some of the strength associated with the advances experienced in the CBOT soybean complex, market watchers said.
Early support in canola was linked to the advances posted overnight by Malaysian palm oil and European rapeseed futures.
Some position evening ahead of Tuesday's updated supply/demand reports from the USDA was a feature of the activity.
Good volume totals were reported in canola, with some of that activity believed to be the rolling of commodity funds out of the nearby March canola future and into the May contract, brokers said.
The reluctance of producers to deliver canola into the grain elevator system in western Canada helped to underpin canola with an improvement in domestic processor demand contributing to the upside price potential, traders said.
Some of the buying in canola was also believed to be the covering of previously sold positions.
Routine exporter pricing of old business was also generating some minor support for canola.
The upside in canola was being limited by the large global oilseed supply situation.
There were an estimated 12,390 canola contracts traded at 10:32 CST. Of the contracts traded, 8,888 were spread related.
There was no western barley futures traded as of 10:32 CST. |