ICE Canada Review: Fresh Export Demand Lifts Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session mainly higher with strength associated with talk of fresh export demand and the advances seen in the CBOT soybean complex, market watchers said.
Export sources were unable to confirm where the business was coming from, but that new Canadian canola sales were indeed being put on the books. Strength in canola was also associated with the need to keep a weather premium built into prices, especially in view of the heavy rainfall that was to hit much of the Canadian prairies Tuesday and Wednesday, brokers said. Additional support in canola was stimulated by steady domestic crusher demand and the pricing of old export business to Japan. Early advances in canola came from the gains posted by Malaysian palm oil and European rapeseed futures. The upside in canola was limited by steady elevator company hedge selling, as producers take advantage of the recent hike in cash bids and deliver canola into the cash pipeline, traders said. Technical resistance in the nearby November contract was also helping to restrict the upward price action in canola. Spreading was a small feature of the activity and helped to augment the volume total. The uptrend in the value of the Canadian dollar also restricted some of the price advances in canola. There were an estimated 9,331 canola contracts traded Tuesday, up from the 6,665 contracts that changed hands during the previous session. Western barley futures were unchanged with no contracts changing hands on Tuesday. On Monday, no barley contracts were traded. |
