ICE Canola Climbs As CBOT Soybeans/Soyoil Rally
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 16, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with the sharp advances in CBOT soybean and soyoil values linked to the gains, market watchers said.
The covering of previously sold positions by a variety of market participants also helped to stimulate the strength seen in canola, brokers said. Adding to the support in canola were reports of fresh export demand and the slow pace of farmer deliveries into the country elevator system, traders said. Routine exporter pricing of old export business helped to provide a firm price floor as did steady demand from domestic processors. Some light technically based buying also provided support for canola. The advances were being limited by the strong Canadian dollar and the large domestic supply of canola. The pending record large soybean harvest in South America also slowed the price gains seen in canola, traders said. There were an estimated 7,973 canola contracts traded at 11:15 CST. There was 19 western barley futures traded as of 11:15 CST. Much of the action occurred in the nearby March future with commercials seen on both sides of the activity, traders said. |
