ICE Canola Futures Up On Renewed Demand
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 4, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at 9:48 EDT. Renewed demand for oilseeds from the international sector given the continued downtrend in the value of the US dollar helped to spark the upward movement in canola, market watchers said.
Gains overnight in e-CBOT soybeans, Malaysian palm oil and European rapeseed futures also propelled canola to higher ground, brokers said. The solidly higher calls for CBOT soybeans and soyoil with the start of the North American day session further underpinned canola futures. Fresh speculative and local buying was adding to the upward price advances as were the absence of significant farmer deliveries into the cash pipeline, traders said. Steady domestic processor demand and the pricing of old export business also fueled some of the price advances. The upside in canola was being restricted by profit-taking with the strong Canadian dollar also slowing the price gains, brokers said. The liquidation of the nearby November contract was also a feature of the activity. As of 9:48 EDT, there were 1,415 canola contracts traded. As of 9:48 EDT, no western barley contracts had been traded.
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