ICE Canola Contracts Climb On Fresh Export Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels with some of the upward price momentum linked to talk of fresh export business being put on the books, market watchers said.
However, export sources were unable to confirm any fresh Canadian canola sales. The buying back of previously sold positions by a variety of market participants contributed to the advances, brokers said. The pricing of old export business to Japan was a supportive price influence with steady demand from the domestic processing sector adding to the strength. Sentiment that the precipitation being received in Alberta and western Saskatchewan was not providing any significant improvement in the soil moisture situation also influenced some of the upward price action seen in canola, traders said. The upturn in CBOT soybean futures also encouraged some minor upward price action in canola, brokers said. The upside in canola was being restricted by steady hedge selling by grain companies, as producers continue to price canola in storage, traders said. Firmness in the Canadian dollar was also limiting the upside in canola. The bulk of the activity in canola consisted of spreading, with fund accounts seen rolling positions out of the nearby May contract and into the July and November futures, traders said. There were an estimated 6,026 canola contracts traded at 10:27 CDT. Of the contracts traded, 4,464 were spread related. There were no western barley futures traded as of 10:27 CDT. |
