ICE Canola Contracts Advance As CBOT Rallies
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| December 1, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at significantly higher levels at midsession. The sharp advances in the CBOT soybean complex sparked a wave of fresh speculative buying that took canola futures up, market watchers said.
The sharp gains in CBOT soyoil futures were especially supportive for canola. The absence of precipitation in the forecast for the soybean crops in Brazil and Argentina also encouraged the aggressive buying interest in canola, brokers said. Adding to the strength in canola were supportive chart signals and steady domestic processor demand amid favourable crush margins, traders said. The pricing of old export business helped to influence the price advances in canola with talk of fresh exporter interest stepping up to the plate adding to the firm price atmosphere, brokers said. Talk of steady demand for Canadian canola oil also underpinned canola futures. Some evening up- of positions ahead of the Statistics Canada crop production survey on Friday was a feature of the activity. The rolling out of January positions and into the March canola contract was also evident. The upswing in the value of the Canadian dollar helped to restrict some of the price gains in canola as did scale up selling by line companies. There were an estimated 7,545 canola contracts traded at 10:33 CST. There were 30 western barley futures traded as of 10:33 CST. Much of the activity in barley consisted of commercials liquidating the nearby December future, brokers said.
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