ICE Canola Contracts Up, Outside Oilseeds Underpin
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher levels at midday, with strength in the CBOT soybean complex and gains overnight in Malaysian palm oil influencing some of the price advances, market watchers said.
Palm oil established 15 month highs in overnight activity, which helped to spark some early buying of canola, brokers said. Gains in CBOT soybean and soyoil values with the start of the North American day helped to propel canola values upwards. Support in canola was also coming from improved crush margins, which has stimulated both domestic processor and exporter demand, traders said. Some of the export demand was believed to be the pricing of old business, but there was also talk that new sales were also being put on the books, brokers said. The buying back of previously sold positions was also evident and helped to buoy canola futures early in the day, brokers said. The upside in canola was being limited by the improved weather conditions for the development of the canola crop and from reports the harvest of the crop has begun in isolated areas of Manitoba, Saskatchewan and Alberta, traders said. Sentiment that canola output could be a bit larger than expected, also was a restricting price factor in the commodity, brokers said. Steady hedge selling by grain companies further limited the upside in canola. Position evening ahead of key USDA supply/demand reports scheduled to be released later in the week was a feature of the activity. There were an estimated 1,780 canola contracts traded at 10:25 CDT. There were no western barley futures traded as of 10:25 CDT. |
