ICE Canola Contracts Up On Export Speculation
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 23, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday with renewed demand from the domestic and export sectors stimulating much of the upward price action, market watchers said.
The renewed demand was linked to the pull-back in the value of the Canadian dollar, brokers said. A big part of the export interest was the pricing of old Japanese business by commercials, traders said. However, there was also speculation that some fresh Canadian canola business was being put on the books with China and/or Pakistan rumoured to have made some purchases, traders said. Early strength in canola was derived from the advances seen in Malaysian palm oil futures overnight and from the strength displayed by Matif rapeseed futures. Support in canola was also encouraged by the gains seen in CBOT soyoil values. The reluctance of producers to deliver into the cash pipeline was also helping to provide a firm floor for canola to work with. The buying back of previously sold positions by speculative accounts was also an underpinning price influence, traders said. Some of the activity was believed to be position evening ahead of the weekend and Monday morning’s first acreage survey from Statistics Canada. The upside in canola was being limited in part by projections calling for record topping area to be planted to the crop this spring in western Canada, brokers said. Record large global supplies of oilseeds also restricted some of the upward price action. There were an estimated 18,195 canola contracts traded at 10:46 CDT. Of the contracts traded, at least 10,600 were spread related. There were no western barley futures traded as of 10:46 CDT. |
