ICE Canola Contracts Climb On Outside Oilseed Gains
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 25, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday. Gains in the outside oilseed markets stimulated good buying interest with the absence of willing sellers helping to exaggerate the price advances in canola, market watchers said.
Canola values were bolstered by the overnight advances seen in Malaysian palm oil and European rapeseed futures. Strength in CBOT soyoil and soybean values contributed to the upward price momentum seen in canola. Support in canola also came from steady domestic crusher demand and the pricing of routine export business to Japan, brokers said. Reports of fresh US soybean export business with China on the weekend also sparked ideas that some Canadian canola business may have also taken place. However, exporters cautioned about reading too much into this, given that Canadian canola can only be shipped to select locations in China due to blackleg disease issues. Some fresh speculative demand was also evident and helped to underpin canola futures. The upside in canola was tempered in part by scale up hedge selling by grain companies and the firm price tone seen in the Canadian dollar, traders said. Profit-taking and overbought price sentiment also restricted some of the price gains. There were an estimated 8,892 canola contracts traded at 10:32 CDT. Of the contracts traded, 5,280 were spread related. There were no western barley futures traded as of 10:32 CDT.
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