ICE Canola Contracts Up, Weak C$ Supportive
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 26, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels at midday with most of the activity centered in the nearby months. Strength was attributed to the pull-back in the value of the Canadian dollar and to steady demand from commercials, market watchers said.
The evening up of positions ahead of the weekend and next week’s USDA perspective plantings report was a feature of the trade. "With the Canadian dollar off a bit, we’re seeing a bit more demand from the domestic processing sector coming forward," a trader said. The pricing of routine export business to Mexico and Japan was also a feature. Farmer selling of canola into the cash pipeline was described as being on the lighter side and was viewed as an underpinning price influence, brokers said. The buying back of previously sold positions was also evident and helped to provide some strength for canola. The small gains seen in CBOT soybeans and soyoil were also contributing to the upward momentum in canola, traders said. Ongoing concerns about dry weather conditions in Alberta and Saskatchewan, heading into spring seeding, also generated some minor support for canola, brokers said. The upside in canola was being limited by the record large supply of soybeans available in Brazil and Argentina. There were an estimated 4,815 canola contracts traded at 10:39 CDT. Of the contracts traded, 3,574 were spread related. There were no western barley futures traded as of 10:39 CDT. |
