ICE Canola Climbs On Technicals, Outside Oilseed Gains
| 2 min read
| By Dwayne Klassen, Resource News International |
| December 1, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at a firmer price level at midday with some of the upward price action associated with supportive chart signals and the strength in the outside oilseed markets, industry sources said.
The nearby January, March and May months were the most active contracts. Some of the activity consisted of position evening ahead of the Statistics Canada crop production update on Thursday. Some of the early support in canola came from the overnight advances seen in international vegetable oil prices, brokers said. The penetration of key technical resistance in the January contract around the C$410 to C$412 area was also instrumental in helping canola futures move upwards, traders said. Contributing to the strength in canola was sentiment that values were lagging behind the other oilseeds and that prices needed an upward correction, traders said. Commercials and domestic crushers were some of the featured buyers. Helping to underpin canola futures were the lack of farmer deliveries, as producers continue to hold out for better values before deciding to sell, brokers said. The upside in canola was being limited by the strong Canadian dollar. The continued locomotive engineers strike against CN Rail was also seen as a limiting price factor. The Canadian Government has introduced legislation to end the strike, but resistance from two opposition parties could hold it up for as long as 2 weeks, officials say. There was also concern about the lack of canola export sales to China, but market participants are looking for this week’s trip to Beijing by Canadian Prime Minister Harper to help resolve the impasse. There were an estimated 12,150 canola contracts traded at 10:52 CDT. There were no western barley futures traded as of 10:52 CDT |
