ICE Canola Contracts Higher In Catch-Up Move
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 2, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at midday with support coming from the need of values to catch up to the advances posted on Thursday by CBOT soybeans when Canadian markets were closed for a holiday, market watchers said.
Strength in CBOT soybean and soyoil values Friday also helped to fuel some of the upward price action in canola, brokers said. Activity in canola was described as "horrendous" given that numerous market participants have extended the July 1 Canada Day holiday and were not seen taking any kind of aggressive market position ahead of the closure of the CBOT on Monday, July 5 as part of the US July 4 celebration, traders said. Some light domestic crusher demand and the absence of significant farmer selling into the cash pipeline helped to generate some support for canola. Weather uncertainty also continued to play a small role in the price direction of canola, with participants now focussing on new forecasts that the canola crop that is left in the ground will have to deal with, brokers said. Weakness in the Canadian dollar was also viewed as an underpinning price influence. Overhead technical resistance continued to restrict the price advances seen in canola. There were an estimated 1,300 canola contracts traded at 10:22 CDT. Of the contracts traded only 136 were spread related. There were no western barley futures traded as of 10:22 CDT. |
