ICE Canola Futures Climb As Outside Oilseeds Rise
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 25, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at 9:47 EST with much of the upward price action associated with the strength seen in the outside oilseed markets, industry watchers said.
Gains were posted overnight in e-CBOT soybean futures with Malaysian palm oil futures also closing with good gains. Some of the buying in canola was also coming from the higher calls for CBOT soybean and soyoil futures with the start of the North American day session, brokers said. Some of the activity in canola has consisted of position evening ahead of the US Thanksgiving holiday Thursday. US markets will also close early on Friday. Helping to generate some support in canola was light exporter pricing of previously conducted business. A slow down in the level of producer offerings to the country elevator system was also providing a firm floor for values, traders said. The upside in canola was being tempered by the strength in the Canadian dollar early Wednesday and by the small declines being posted by global crude oil futures. The inability of the nearby January future to penetrate key technical resistance in the C$411 area was also being viewed as an undermining price influence. Helping to keep canola futures on the defensive were China’s import restrictions and the US Food and Drug Administration’s prohibition on Canadian canola meal imports due to salmonella issues. As of 9:47 am EST, there were 420 canola contracts traded. As of 9:47 am EST, no western barley contracts had been traded. |
