ICE Canola Contracts Up As Export Talk Lifts Values
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| January 24, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midsession, with the upswing encouraged by talk of strong commercial demand, market watchers said.
Much of the commercial interest was said to be the pricing of old export business, but there was also speculation that some fresh sales of Canadian canola have been made to eith er China or Pakistan, brokers said. Specifics on quantity and on shipping dates of the business were not available. Continued strong demand from domestic processors in western Canada also influenced some of the price advances seen in canola, traders said. Strength in canola was also linked to the firm price tone seen in CBOT soyoil values. The price gains in canola were being tempered in part by scale up hedge selling by grain companies, traders said. They noted producers overall continue to remain reluctant to deliver canola, but with the cash bids for the commodity continuing to climb, some selling has started to come forward. The continued firmness of the Canadian dollar against the US currency also was seen as an undermining price influence on canola. Spreading was a feature of the activity in canola and was helping to augment the volume total. There were an estimated 9,361 canola contracts traded at 10:22 CST. Of the contracts traded, 5,246 were spread related. There were no western barley futures traded as of 10:22 CST.
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