ICE Canola Futures Strengthen As Outside Oilseeds Rally
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at 9:19 EDT. New highs in Malaysian palm oil futures overnight and general strength in the outside oilseed markets, helped to push canola futures upwards, industry sources said.
Activity was described as light and choppy. Crude palm oil futures on Malaysia’s derivatives exchange rose to their highest level in 15 months after gains in other agricultural futures and higher crude oil prices fueled the rally, analysts said. Gains in eCBOT soybean futures overnight and the higher calls for CBOT soybeans and soyoil with the start of the North American day session helped to influence the price advances in canola, brokers said. Steady domestic processor demand was seen providing canola with some support with the pricing of old export business adding some minor strength to values, analysts said. There was also some talk about fresh export business being concluded, but confirmation was not available. The upside in canola was expected to be limited by the advancing harvest operations for canola in Manitoba and some areas located in other parts of the Canadian prairies, traders said. Elevator company hedge selling was also evident and was seen limiting the price gains. The Canadian dollar was little changed in early Monday morning activity and had little overall direct impact on the direction of canola. Some evening up of positions was anticipated in canola ahead of supply/demand reports scheduled to be released by the USDA later this week, brokers said. As of 9:25 EDT, there were only 437 canola contracts traded. As of 9:25 EDT, no western barley contracts had been traded. |
