ICE Canola Contracts Climb On Fresh Export Talk
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 16, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with some of the upward price momentum being encouraged by talk of fresh export business being completed, market watchers said.
Canola futures moved higher early in response to sentiment that values were oversold and in need of an upward correction, traders said. The buying back of previously sold positions also contributed to some of the price strength displayed by canola. Good commercial demand surfaced this morning, with some of the interest said to be covering fresh sales to Mexico, brokers said. The advances in canola also reflected the upward price action experienced by CBOT soybean and soyoil values. Traders noted that it did not take much in the way of buying to push canola futures up in the absence of willing sellers. The selling that surfaced came from elevator companies, brokers said. The upside in canola was restricted by the strength of the Canadian dollar and by the record large soybean supply situation in South America. Losses in Malaysian palm oil futures overnight also helped to temper the price gains in canola. There were an estimated 4,881 canola contracts traded at 10:42 CDT. Of the contracts traded, 2,682 consisted of spreads. There were no western barley futures traded as of 10:42 CDT. |
