ICE Canola Contracts Up On Short-Covering
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 23, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher levels at midday with the buying back of previously sold positions by a variety of market participants behind the advances, industry watchers said.
Early strength in canola also came from the gains displayed by Malaysian palm oil futures overnight, brokers said. Good commercial demand, thought to be covering domestic processor needs as well as routine business to Japan and Mexico, also generated strong support for canola values. The implementation of spring road bans in western Canada was also slowing farmer deliveries of canola to the grain companies and in turn helping to underpin canola futures, traders said. Talk of fresh export business for Canadian canola being booked and helped to support futures, traders said. Exporters, however, were unable to confirm any new sales. The upside in canola was being limited by the record large soybean crops being harvested in Brazil and Argentina. The prospects of a significant jump in canola acreage this spring in western Canada also restricted the price gains. Weakness in CBOT soybean and soyoil futures also was tempering the upside in canola, brokers said. There were an estimated 4,960 canola contracts traded at 10:38 CDT. There were no western barley futures traded as of 10:38 CDT.
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