ICE Canola Contracts Up In Catch Play
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 12, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at midday in heavy volumes of activity. Strength in canola was associated with the need to play catch-up to the advances seen in CBOT soybean futures on Monday when Canadian markets were closed for Thanksgiving, market watchers said.
Gains in CBOT soybean futures again on Tuesday helped to stimulate some additional buying interest in canola, brokers said. The advances in canola were also linked to some supportive chart signals and to steady demand from domestic processors, analysts said. Profit margins for domestic processors continue to improve, resulting in the strong demand. The pricing of old export business was also an underpinning price influence for canola values. However, the upside in canola was lagging in comparison to the other oilseed markets, with the favourable weather for the harvest of the canola crop in western Canada restricting the advances, traders said. The steady selling of canola right off the combine and into the cash pipeline further limited the upward price momentum in the commodity. The upside in canola was further restricted by the continued uptrend in the value of the Canadian dollar, brokers said. A good portion of the volume seen in canola was believed to be the rolling of positions out of the nearby November future and into the January contract by commodity funds, brokers said. There were no western barley futures traded as of 10:17 CDT. |
