ICE Canola Contracts Hold Firm, Soyoil Gains Supportive
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 30, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at midsession . Gains in CBOT soyoil futures and sentiment that canola futures were undervalued in comparison to CBOT soybeans helped to influence the upward price action, market watchers said.
Additional support in canola came from the overnight advances seen in Malaysian palm oil and European rapeseed futures, brokers said. Adding to the strength in canola were the concerns about the dry growing conditions in the soybean producing regions of Brazil and Argentina, traders said. Steady domestic crusher demand under the market helped to influence the gains in canola with the pricing of old export business adding to the firm tone, brokers said. A drop off in the level of hedge offers from elevator companies further underpinned canola futures. The upside in canola was being limited by the absence of fresh export business being put on the books. Weakness in CBOT soybean futures also restricted the price gains in canola, traders said. Position evening ahead of Friday`s latest crop production survey from Statistics Canada was a feature of the activity in canola, traders said. General expectations are for an upward revision to the canola production estimate. Global economic concerns, including the debt issues in Europe, tempered the gains in canola. There were an estimated 7,383 canola contracts traded at 10:32 CST. Of the contracts traded 4,786 were spread related. There were no western barley futures traded as of 10:32 CST |
