ICE Canola Contracts Climb on CBOT Gains, Rise In Demand
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 3, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday with gains reflecting the advances experienced in CBOT soybean and soyoil values and on a pick up in demand from the commercial sector, market watchers said.
Some of the early buying in canola was encouraged by the advances posted by Malaysian palm oil and European rapeseed futures overnight, brokers said. Helping to give canola futures a boost was a pick up in domestic processor demand in view of improved crush margin profitability, traders said. Some crushers were said to be tightening up basis levels in order to encourage producers to deliver canola up their driveways. Routine exporter pricing of old export business to Japan and Mexico contributed to the strength in canola. The buying back of previously sold positions by speculative accounts was also an underpinning price influence, traders said. The advances in canola were being limited by the strong Canadian dollar as well as by the ongoing harvest of a record sized soybean crop in Brazil and Argentina. The potential for a huge increase in the area seeded to soybeans in the US this spring also was a factor restricting the price gains in canola, brokers said. There were an estimated 3,463 canola contracts traded at 10:28 CST. Of the contracts traded, 700 consisted of spreads. There were no western barley futures traded as of 10:28 CST. |
