ICE Canola Contracts Bolstered by Outside Oilseeds
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 22, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday. Strength in canola was linked to the advances seen in the outside oilseed markets, industry watchers said.
Canola garnered early support from the advances experienced by e-CBOT soybeans, Malaysian palm oil and European rapeseed futures overnight, brokers said. Both palm oil and European rapeseed were said to be sitting near contract highs. Additional gains in canola were attributed to the higher start seen in CBOT soybean and soyoil values with the start of the North American day session. The strength in canola was also stemming from strong domestic processor demand with some light speculative chart-based buying adding to the upward price momentum, traders said. The pricing of routine export business to Japan by commercial accounts also was an underpinning price influence for canola. The winding down of the canola harvest across western Canada was also providing some minor support. With the harvest virtually complete, producers were seen slowing deliveries into the cash pipeline, brokers said. The gains in canola were limited in part by profit-taking and the evening up of positions ahead of the weekend, traders said. Overbought price sentiment was also restricting the price advances in canola. There were an estimated 6,702 canola contracts traded at 10:37 CDT. Of the contracts traded, 1,600 were spread related. There were no western barley futures traded as of 10:37 CDT |
