ICE Canola Contracts Up on Dryness Concerns
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 29, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with strength coming from growing concern about dryness in parts of Alberta and Saskatchewan, market watchers said.
Adding to the upward price momentum in canola was steady demand from domestic processors with the pricing of routine export business helping to amplify the advances, brokers said. Strength in canola was also stemming from the gains posted by CBOT soybean and soyoil values. Good volumes were being posted in canola with some of the activity said to be the rolling of May contracts into the July future by index fund accounts, traders said. Some position evening ahead of Wednesday’s perspective plantings report from the USDA was also a feature of the activity in canola. The upside in canola was being limited by the strength of the Canadian dollar against other foreign currencies and some chart based liquidation selling, brokers said. Elevator company hedge selling, as producers take advantage of the canola rally to price on-farm supplies, also restricted some of the upward momentum. The upside in canola was also being limited by the record large supply of soybeans available in Brazil and Argentina. There were an estimated 10,572 canola contracts traded at 10:41 CDT. Of the contracts traded, 6,736 were spread related. There were no western barley futures traded as of 10:41 CDT.
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