ICE Canola Contracts Climb As Demand Returns
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 22, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with renewed demand from the domestic and export sectors tied to the upward price movement, market watchers said.
A minor pull-back in the value of the Canadian dollar early Thursday was enough to stimulate fresh demand from domestic processors as well as commercials, brokers said. Much of the commercial interest, was said to be the pricing of old export business to Japan, but there were also indications that some fresh Chinese business may have been put on the books, traders said. Export sources were unable to confirm any fresh sales of Canadian canola had been made. The drop in the Canadian dollar was also said to have improved profit margins for crushers, prompting their return, brokers said. Activity in canola was described as choppy although spreading was a key feature of the trade. Some evening up of positions ahead of Monday’s first acreage survey from Statistics Canada was also a feature of the canola activity. The upward price movement in canola also reflected the gains that were posted by CBOT soybean and soyoil values, traders said. The buying back of previously sold positions helped canola contracts push to higher ground. The upside in canola continued to be limited by estimates calling for record sized canola acreage this spring, brokers said. There were an estimated 9,483 canola contracts traded at 10:44 CDT. There were no western barley futures traded as of 10:44 CDT. |
