ICE Canola Climbs As CBOT Soyoil Strengthens
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 4, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels at midday with some of the upward price movement associated with the advances seen in CBOT soyoil and on talk of fresh demand coming forward for canola, market watchers said.
Position evening ahead of Friday’s grain and oilseed stocks in all positions report from Statistics Canada was also a feature of the activity. CBOT soyoil futures found support from the Environmental Protection Agency’s announcement on mandates for biofuel. The mandate for biodiesel is seen as favorable for soyoil used for biodiesel and should lead to strength in soyoil product value share, brokers said. Strength in canola also came from fresh export demand. There were reports that a couple of cargoes of Canadian canola were sold to Mexico late last week and that some fresh canola business was being concluded with another end-user this week, brokers said. The buying back of previously sold positions helped contribute to the upward price momentum in canola as did the pull-back in the value of the Canadian dollar, traders said. The reluctance of producers to deliver canola into the grain handling system in western Canada further underpinned canola futures, brokers said. The upside in canola was limited by the large global oilseed supply situation with the downtrend in CBOT soybean futures also an undermining price influence, traders said. Bearish chart signals were also helping to restrict the price gains in canola. There were an estimated 6,972 canola contracts traded at 10:29 CST. Of the contracts traded, 5,256 were spread related. There was 1 western barley futures traded as of 10:29 CST. Light commercial demand, in the absence of willing sellers, allowed the May contract to be pushed higher, brokers said. |
