ICE Canola Contracts Climb on Oversold Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 2, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday with oversold price conditions prompting some of the upward price momentum, market watchers said.
The buying back of previously sold positions by commodity funds was also an underpinning price influence. Some of the buying in canola also came from small concerns about planting delays and crop damage in parts of western Canada due to excessive moisture, brokers said. The firm price tone being experienced in CBOT soybean and soyoil values was also spilling over to generate some strength in canola, traders said. Light domestic crusher demand and the pricing of old export business to Japan by commercial accounts helped to keep a firm floor under canola. The upside in canola was being limited by the upswing in the value of the Canadian dollar and by bouts of hedge selling by grain companies. The gains in canola were also being restricted by the drier conditions across the Canadian Prairies and a reduction in the amount of precipitation that was seen hitting western Canada by the weekend, brokers said. The rolling of positions out of the nearby July canola future and into November by index funds continued to be a feature of the activity, brokers said. There were an estimated 6,610 canola contracts traded at 10:24 CDT. There were no western barley futures traded as of 10:24 CDT. |
