ICE Canola Contracts Rise On CBOT Soyoil Rally
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with much of the upward price momentum encouraged by the rally experienced in CBOT soyoil values, market watchers said.
Canola futures had been trading in a narrowly mixed range early with participants absorbing the supply/demand reports from the USDA. With the start of the North American day session CBOT soybeans opened narrowly mixed while soyoil was steady to fractionally higher. However, shortly after the opening soyoil values rallied, sparking the upward movement in canola, traders said. They noted that a lot of the buying in canola was the covering of previously sold positions. Support in canola was also derived from the advances seen overnight in Malaysian palm oil futures. Routine exporter pricing and steady domestic crusher demand also influenced the upward price action seen in canola, brokers said. The upside in canola was being tempered in part by the confirmation of a large global soybean supply and by the continued strength in the value of the Canadian dollar, traders said. Steady selling by grain companies in western Canada also restricted the price advances in canola. The prospect of increased canola area across western Canada this spring was also hindering the price gains in canola, brokers said. There were an estimated 5,753 canola contracts traded at 10:43 CST. Of the contracts traded, 3,374 consisted of spreads. There were no western barley futures traded as of 10:43 CST. The absence of open interest in barley was keeping participants out of the market, brokers commented. |
