ICE Canola Contracts Mixed, Strong C$ vs Light Demand
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 25, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a narrowly mixed range at midday, with the two nearby contracts up and some of the deferreds lower. Continued strong commercial demand provided a firm floor for canola values while the strengthening of the Canadian dollar was an undermining price influence, market watchers said.
Some early support in canola came from the overnight advances experienced in Malaysian palm oil and European rapeseed futures, brokers said. A mostly firmer start to the North American day session in CBOT soybean and soyoil values had also generated some support for canola. Much of the commercial demand that has surfaced for canola was believed to be for domestic processors although some covering of routine export business was ongoing, traders said. They noted that the buying interest in canola was non-aggressive. Some of the strength displayed by canola was also tied to the buying back of positions by speculative accounts, brokers said. Dryness concerns heading into spring seeding in Alberta and the western parts of Saskatchewan were also helping to keep a firm floor under canola, brokers said. Weakness in canola was being tied to the firmness of the Canadian dollar which makes canola more expensive in general. The record large supply of soybeans available from South America also contributed to the selling that was keeping some canola contracts on the defensive. Commercials were also noted sellers of canola, but again the selling was non-aggressive, brokers said. There were an estimated 5,617 canola contracts traded at 10:49 CDT. Of the contracts traded, 3,322 were spread related. There were no western barley futures traded as of 10:49 CDT |
