ICE Canola Contracts Up, Domestic Demand Supportive
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| February 3, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midsession with the advances linked to strong demand from the domestic processing sector, market watchers said.
Some early support in canola came from the advances seen in European rapeseed futures and from the generally firmer start seen in CBOT soybean and soyoil values, brokers said. The absence of significant farmer deliveries into the cash pipeline in western Canada provided some support for canola as did the pricing of routine export business by commercial accounts. Activity in canola was on the lighter side with few market participants wanting to be holding large positions ahead of the grain and oilseed stocks in all positions report scheduled to be released by Statistics Canada Friday morning, traders said. The upside in canola was being limited by profit-taking by a variety of market participants, traders said. Light speculative liquidation ahead of the report was also evident. The approach of technical resistance levels also curbed some of the upward price action in canola. There were an estimated 5,490 canola contracts traded at 10:49 CST. Of the contracts traded, 1,348 were spread related. There were no western barley futures traded as of 10:49 CST.
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