ICE Canola Contracts Rally On Export Demand
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 14, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday with much of the upward price momentum being encouraged by talk of fresh export business being completed, market watchers said.
Reports of fresh Canadian canola sales to Pakistan and Mexico were making the rounds, which helped to stimulate the price advances, brokers said. Adding to the strength in canola was the significant downswing in the value of the Canadian dollar which helped to encourage the fresh demand. Support in canola was also said to be coming from reports overnight that the Chinese Government may relax its restrictions against Canadian canola imports, brokers said. In November 2009, China began requiring that import shipments of Canadian canola be declared free of blackleg disease, which is common in Canada. Steady domestic crusher demand for canola helped to underpin prices as did the absence of selling from producers and speculative accounts, traders said. "The absence of sellers in canola rally helped to augment the gains," a trader said. The upside in canola was being restricted in part by the optimal growing conditions for the planting and development of the canola crop in western Canada. Weakness in CBOT soybean and soyoil futures was also limiting the strength seen in canola, traders said. There were an estimated 6,032 canola contracts traded at 10:47 CDT. Of the contracts traded, 2,640 were spread related. There were no western barley futures traded as of 10:47 CD |
