ICE Canola Contracts Up, Weather Outlooks Supportive
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| May 9, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midsession Monday with weather outlooks calling for additional precipitation on the Canadian prairies behind some of the upward price action, market watchers said.
Adding to the strength in canola were the advances posted overnight in Malaysian palm oil and European rapeseed futures. Gains in CBOT soybean and soyoil values contributed to the price advances in canola. Some of the buying that surfaced in canola came from commodity and speculative fund accounts, with chart signals said to be taking a turn to the upside, brokers said. Weakness in the Canadian dollar early Monday was also fuelling some fresh commercial demand for canola. Some of the commercial interest was said to be covering routine export business as well as a pick up in domestic crusher needs, traders said. Elevator company hedge selling was on the thin side and was being conducted on a scale-up basis, brokers said. Tighter than expected stocks of canola in commercial and on-farm position also continued to provide some underlying support for canola futures. Traders said the weather outlooks were calling for additional moisture in the eastern regions of the Canadian prairies, where seeding operations continued to be delayed. Some seeding has taken place in the western regions of Western Saskatchewan and parts of Alberta, but progress in those areas has also been limited, traders said. There were an estimated 5,151 canola contracts traded at 10:15 CDT. Of the contracts traded, 2,738 were spread related. There were no western barley futures traded as of 10:15 CDT. |
