ICE Canola Contracts Up On Acreage Data, Export Demand
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 26, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with acreage estimates from Statistics Canada coming in at the low end of pre-report expectations tied to some of the support, market watchers said.
The government agency in its first look at what Canadian producers intended on planting this spring, pegged canola area at a record 16.9 million acres. However, the estimate fell at the low end of pre-report projections which were as high as 17.5 million to 18.0 million acres. Some of the early strength in canola came from the advances seen in Malaysian palm oil and European rapeseed futures overnight, brokers said. Strength in CBOT soybean and soyoil futures helped contribute to the upward price momentum seen in canola. The advances in canola were also tied to the covering of previously sold positions and a slow down in the level of farmer selling. Good levels of commercial pricing also fueled the gains in canola. Traders said some of that pricing was believed to be covering old sales to Japan, but also fresh business with either Pakistan or China. A slow down in the planting of the crops across western Canada due to cool temperatures and precipitation also lent some light underlying support, traders said. The moisture was welcomed where received, but puts the brakes on field operations for the moment. More rain is anticipated over a wide swath of dry areas starting Wednesday and into Friday. The upside in canola was also limited by bouts of profit-taking and by the large global oilseed supply situation, traders said. There were an estimated 8,567 canola contracts traded at 10:37 CDT. There were no western barley futures traded as of 10:37 CDT. |
