ICE Canola Contracts Move Up On Export Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 16, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday, although values did start off mostly on the defensive. Strength was being associated with the absence of willing sellers and to a pick up in commercial demand, some of which was believed to be export in nature, market watchers said.
Some of the early weakness in canola was tied to profit-taking after good gains seen last week and to the early losses seen in CBOT soybean and soyoil futures. Declines overnight in Malaysian palm oil futures also encouraged some of the early selling seen in canola, brokers said. Activity in canola was on the lighter side with some market participants beginning to even positions ahead of Friday’s first crop production survey from Statistics Canada. Support in canola was also stemming from the pull-back in the value of the Canadian dollar and from the rain received across the weekend that was believed to have slowed the harvest of the canola crop, traders said. However, drier weather outlooks for most of the Canadian prairies was seen allowing producers to catch up on harvest activities, which in turn restricted the price gains. The buying back of previously sold positions by commercial accounts helped to propel canola values upwards, brokers said. There were rumours of fresh export business for Canadian canola being put on the books, with talk of interest from Pakistan and China. However, no confirmation of any new sales was available, brokers said. There were an estimated 3,077 canola contracts traded at 10:29 CDT. Of the contracts traded, 808 were spread related. There were no western barley futures traded as of 10:29 CDT. |
