ICE Canola Contracts Up On CBOT Gains, Weather Issues
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 6, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at midday with support associated with the advances seen in the CBOT soybean complex and ongoing concerns about lost canola production due to adverse weather, market watchers said.
Canola futures shot upwards early in reaction to sentiment that the declines seen in the commodity on Monday when the US markets were closed for Independence Day were overdone. Gains overnight in Malaysian palm oil and in the e-CBOT soybean complex also helped to encourage the early advances in canola. brokers said. The advances in CBOT soybean futures with the start of the North American day session also helped to propel canola values upwards, traders said. Heavy precipitation across much of western Canada during the weekend and the continued dry conditions in the northern canola growing regions of Alberta helped to influence some of the buying seen in the commodity, traders said. Steady domestic crusher demand and the pricing of old export business contributed to the strength in canola. Producer deliveries of canola into the cash pipeline also remain extremely thin, which further underpinned canola values, brokers said. There were also indications of fresh export interest in Canadian canola, but no new business could be confirmed by export sources. The upside in canola was limited by bearish overhead technical resistance levels. Profit-taking at the highs also helped to trim some of the upward price momentum. There were an estimated 2,861 canola contracts traded at 10:17 CDT. There were no western barley futures traded as of 10:17 CDT. |
