ICE Canola Contracts Rise As Export Talk Continues
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday. Strength in canola was linked mainly to talk of fresh export business being completed, marke4t watchers said.
Pakistan was said to have purchased a couple of cargoes of Canadi8an canola earlier this week, but there were again reports of additional Canadian canola being sold to another destination, brokers said. Confirmation from export sources was lacking. Additional strength was linked to steady domestic processor demand with producers remaining reluctant sellers. Sentiment that the losses seen in canola on Thursday were overdone and in need of an upward correction also generated some early support, traders said. Some early buying in canola was also stimulated by the brief upturn in CBOT soybean and soyoil values, brokers said. However, when those values began to move lower the gains in canola were tempered. Strength in the Canadian dollar was viewed as an undermining price influence for canola. The advancing harvest of a record sized soybean crop in Argentina and Brazil also was restricting the price advances, traders said. Speculative fund accounts were some of the featured sellers of canola. There were an estimated 5,229 canola contracts traded at 11:23 CST. Of the contracts traded, 2,324 consisted of spreads. There were no western barley futures traded as of 11:23 CST. |
