ICE Canola Contracts Climb As Export Pricing Continues
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 8, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday with some of the upward price momentum associated with exporter pricing, market watchers said.
The export pricing was associated with talk that China has been seeking out additional quantities of Canadian canola that will be destined for regions within China designated as blackleg disease areas, traders said. The lack of volume in canola was causing price movement to be amplified, brokers said. Additional support in canola came from the advances seen overnight in Malaysian palm oil futures. Buying in canola was also linked to the advances displayed by CBOT soyoil values. Light domestic crusher demand was also evident, but the buying was seen as "non-aggressive" by market participants. The upside in canola was limited by the record South American soybean crop that is currently being harvested and by talk of higher than anticipated canola acreage in Canada this spring, traders said. Elevator company hedge selling helped to restrict the price gains in canola. Early strength in the Canadian dollar was also an undermining price influence for canola, but the currency has since given up some of its firmness. There were an estimated 1,654 canola contracts traded at 10:43 CST. Of the contracts traded, 242 consisted of spreads. There were 11 western barley futures traded as of 10:43 CST. Sentiment that barley was oversold and in need of an upward correction helped the May future move up, brokers said. The lack of willing sellers amplified the small commercial buying interest. |
