ICE Canola Futures Mixed To Higher On Follow-through Demand
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mixed to mostly higher price levels at 9:37 EDT. Light follow-through demand from Thursday’s higher close helped to generate some of the upward price action seen in canola, market watchers said.
Gains overnight in e-CBOT soybean futures helped to encourage some of the upward price action as did the higher calls for soybean and soyoil values with the start of the North American day session, brokers said. Malaysian palm oil markets were closed overnight in observance of a public holiday. Position evening ahead of the weekend and next week’s supply/demand balance sheets scheduled to be released by the USDA was likely to be a feature of the activity in canola Friday, analysts said. The USDA is expected to lower US soybean stocks on November 9, which would help to provide some underlying support for canola, brokers said. Steady domestic crusher demand and the pricing of old export business was expected to provide some additional support to canola futures. A decline in the level of farmer deliveries into the cash pipeline were seen helping to underpin canola futures, brokers said. The upside in canola will be restricted by profit-taking and the overbought market conditions. The move by the Canadian dollar to trade at par with the US currency this morning will also be an undermining price influence. As of 9:37 EDT, there were 1,415 canola contracts traded. As of 9:37 EDT, no western barley contracts had been traded.
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