ICE Canola Contracts Climb On Oversold Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 12, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday with the upswing associated with oversold conditions, market watchers said.
The resurfacing of demand for canola helped to generate some of the upward price action. Commercials were seen pricing old export business to Japan with talk of fresh business also being covered, brokers said. Domestic crushers were also steady buyers with the recent price dip in canola to new contract lows, stimulating the demand, traders said. "I think we’re seeing some bargain hunting in canola," a broker said. The buying back of previously sold positions by a variety of market participants helped to underpin canola as did the early advances in CBOT soybean and soyoil values, traders said. A small decline in the level of hedges from elevator companies was also supportive for canola, as producers resume concentrating on spring fieldwork and planting operations. The upside price potential was being tempered by the improved soil moisture situation in western Canada and the return of warm temperatures. The weather was seen as beneficial for the record sized canola crop that will be planted this spring, traders said. The pull-back in CBOT soybean futures after the opening, helped to restrict the price gains in canola. There were an estimated 6,975 canola contracts traded at 10:39 CDT. Of the contracts traded, 2,104 were spread related. There were no western barley futures traded as of 10:39 CDT |
