ICE Canola Contracts Strengthen On Weather Concerns
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 8, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at midday with much of the strength coming from ongoing weather concerns and commodity fund demand, market watchers said.
Some of the upward price action seen in canola came from the reduced production prospects for canola in western Canada because of the adverse weather conditions, traders said. Helping to prop up canola futures was fresh speculative fund buying interest. Much of that demand was spurred on by the penetration of technical resistance levels during Wednesday`s session . Strength overnight in Malaysian palm oil futures and firm European rapeseed futures, also due to weather related production issues, contributed to the strength displayed by canola, brokers said. Minor domestic crusher demand and the pricing of old export business by commercials also helped canola futures push upwards. The upward momentum in canola was stalled by elevator company hedge selling, with producers willing to deliver as bids in the cash market hit C$10 a bushel, traders said. Some small resistance at C$440 per ton in the November contract restricted the upward price action in canola, brokers said. An upturn in the value of the Canadian dollar also had bearish price implications for canola futures. There were an estimated 4,190 canola contracts traded at 10:22 CDT. Of the contracts traded, 832 were spread related. There were no western barley futures traded as of 10:22 CDT. |
