ICE Canola Contracts Gain On Improved Demand
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels with the advances associated with the pull-back in the value of the Canadian dollar and a pick up in demand, market watchers said.
Some early strength in canola was derived from the sharp advances experienced by Malaysian palm oil values overnight. Activity in canola was described as light and choppy with the readjusting of canola positions via spreads, a key feature, brokers said. The evening up of positions ahead of the weekend was also evident. The weak Canadian dollar helped to stimulate some additional domestic crusher demand, traders said. The pricing of old Japanese business by commercials was also an underpinning price influence for canola. The early advances posted in CBOT soybean and soyoil values had also encouraged the upside in canola, but when the gains in soybeans began to erode, the strength in canola was also trimmed, brokers said. Elevator company hedge selling at the highs of the day also helped to restrict the upward price potential in canola, traders said. Reports of significant precipitation in the form of snow in Alberta and Saskatchewan also limited the upside in canola, with the moisture needed to help alleviate dry soil conditions ahead of spring seeding operations, brokers said. Continued ideas of record large canola acreage in western Canada this spring also restrained the advances in the commodity. There were an estimated 4,585 canola contracts traded at 10:46 CDT. Of the contracts traded, 2,706 were spread related. There were no western barley futures traded as of 10:46 CDT. |
