ICE Canola Contracts Up As China Talk Continues
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| December 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midsession with much of the upward price momentum linked to talk of fresh Canadian sales to China, market watchers said.
The penetration of technical resistance levels in a number of contracts also triggered a fresh round of aggressive speculative fund buying, which only amplified the upward price action seen in canola so far. Brokers indicated that commercials has been aggressively pricing Canadian canola that has been recently sold to China and that some additional sales were in the works. Aggressive demand from western Canada’s domestic processing sector helped to augment the upward price action seen in canola. New 29-year highs established in Malaysian palm oil futures overnight helped to stimulate some of the early buying seen in canola, brokers said. Small gains in CBOT soyoil helped to stimulate the gains seen in canola. Support in canola was also tied to sentiment that Friday’s supply/demand tables from the USDA would show tight US soybean supplies, traders said. The upward price momentum in canola was restricted in part by profit-taking by locals at the highs of the day. Scale-up elevator company hedge selling was also evident, which helped to slow the price advances. A good portion of the volume total was made up of spreading, brokers said. There were an estimated 15,213 canola contracts traded at 10:44 CST. Of the contracts traded, 8,794 were spread related. There were no western barley futures traded as of 10:44 CST.
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