ICE Canola Contracts Firms On Good Demand, Weak C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels at midday after starting on a weaker footing. Strength in canola was linked to steady demand, a drop off in deliveries and weakness in the Canadian dollar, market watchers said.
Canola had been under downward pressure early in the session from the improved soil moisture conditions in western Canada for the various crops. Good growing conditions and the record area to soybeans in the US were also viewed as undermining price influences for canola, brokers said. Declines in the outside commodities also influenced some of the downward price action. However, much of the early selling dried up as the session progressed, allowing fresh domestic crusher demand to push canola values up, traders said. The pricing of old export business by commercials also generated some of the upward price momentum seen in canola, brokers said. The buying back of previously sold positions by commodity funds was also evident and helped to provide some support. A slow down in the level of hedges by elevator companies also propped up canola values, brokers said. There were an estimated 6,784 canola contracts traded at 10:44 CDT. Of the contracts traded, 1,124 were spread related. There were no western barley futures traded as of 10:44 CDT |
