ICE Canola Contracts Climb On Export Talk, CBOT Gains
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 1, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at midday with strength associated with the gains seen in CBOT soyoil and soybean values as well as on talk of fresh export demand, market watchers said.
The upward price action seen in CBOT soyoil helped to take canola from lower levels to the upside, traders said. CBOT soybean values had also started the North American trading session on the defensive and when they followed soyoil up, canola values received a little extra price boost. Early losses in canola had been stimulated by the upward rebound in the value of the Canadian dollar and some early day hedge selling by elevator companies, brokers said. The early declines in canola were also linked to reports that the harvest of the record sized soybean crops in Argentina and Brail were underway. Large on-farm supplies of canola in western Canada were also an undermining price influence. Some of the support that surfaced in canola also came from the buying back of previously sold positions by commodity fund accounts and from reports of fresh export business being booked, traders said. They noted that China had purchased, or was looking to buy, unspecified quantities of Canadian canola for an unspecified delivery date. Routine exporter pricing and some light domestic crusher demand helped to provide some support, brokers said. There were an estimated 2,923 canola contracts traded at 10:38 CST. Of the contracts traded, 834 consisted of spreads. There were 12 western barley futures traded as of 10:38 CST. Light commercial selling, sparked in part by weak CBOT corn futures, weighed on barley, brokers said. |
