ICE Canola Contracts Up On Export Biz
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| December 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midsession with strength in the commodity continuing to be associated with fresh export business, market watchers said.
Rumors of fresh Canadian canola oil sales, along with fresh canola seed business, prompted the upward price action in canola, traders said. Strength in canola was further associated with strong domestic crusher demand as well as a drop off in the level of hedging by line companies, brokers said. Some nervous liquidation of canola contracts was also evident, which had sparked some weakness in the commodity, traders said. However, as the session progressed, that nervousness dissipated and allowed canola futures to resume their trek to higher ground, they said. The establishment of new overnight in Malaysian palm oil futures also encouraged some of the strength seen in canola. The upside in canola was being tempered by profit-taking and the weakness being exhibited by CBOT soybean and soyoil values, brokers said. A good portion of the volume total was made up of spreading, brokers said. There were an estimated 8,810 canola contracts traded at 11:05 CST. There were no western barley futures traded as of 11:05 CST.
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