ICE Canola Contracts Hold Firm On Export Talk
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 3, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at midday. Some of the strength was associated with the advances posted in CBOT soybeans and soyoil on Monday with the ICE Canada platform was closed for a holiday, market watchers said. Additional support in canola, meanwhile, was coming from talk of fresh export business.
While confirmation was lacking, export sources were indicating that Canadian canola was in the process, or had recently been sold to Mexico. Support in canola was also linked to steady domestic processor demand and the pricing of old export business to Japan, traders said. Some weather concerns, tied to the recent heavy rainfall received across parts of western Canada during the weekend, also helped to inject some support into the canola market, brokers said. However, the upside in canola was being restricted by the declines seen in CBOT soybeans and soyoil so far during Tuesday’s North American day session. Losses overnight in Malaysian palm oil and European rapeseed values also slowed the upward price climb by canola, brokers said. Further restricting the upside in canola were steady hedge offers from elevator companies, as producers remain steady sellers of canola into the cash market, traders said. Some slight firmness in the Canadian dollar was also viewed as an undermining price influence. There were an estimated 6,280 canola contracts traded at 10:23 CDT. There were no western barley futures traded as of 10:23 CDT. |
