ICE Canola Contracts Up, Follow CBOT Soybean Gains
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at significantly higher levels at midday with much of the upward price movement inspired by the bullish USDA supply/demand report for the CBOT soybean complex, market watchers said.
Canola futures shot upwards in reaction to the report which reduced the size of the US soybean harvest and tightened the soybean supply outlook, brokers said. Additional strength in canola was associated with the near contract highs established in Malaysian palm oil and European rapeseed futures overnight. Good commercial demand and the establishment of additional long positions by speculative accounts also fueled the upward price action seen in canola, traders said. Much of the commercial interest was said to be covering domestic processor needs, brokers said. The pricing of old export business was also ongoing. Some of the speculative demand was also said to be chart related, brokers said. Profit-taking at the high was evident and helped to slow some of the price advances in canola. Elevator company hedge selling at the highs was also evident, with producers seen as being more willing to unload canola amid the upward price surge, analysts said. Position evening ahead of the closure of the ICE Canada trading platform Thursday for the Remembrance Day observance in Canada was a feature of the activity. There were an estimated 11,170 canola contracts traded at 10:48 CST. There were no western barley futures traded as of 10:48 CST. |
