ICE Canola Futures Climb Higher On Outside Oilseeds
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 23, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at 9:47 EST with strength associated with the advances seen overnight in the outside oilseed markets, industry watchers said.
Gains were made overnight in e-CBOT soybean futures with Malaysian palm oil futures establishing a new 14-week high. European rapeseed values also moved upwards overnight. The higher calls for CBOT soybean and soyoil futures were also influencing some of the strength seen in canola early Monday, brokers said. Adding to the strength in canola will be the advances seen in the North American equity sector and the gains seen in global crude oil futures, traders said. Some underlying support in canola was also seen stemming from the pricing of old export business and talk of fresh business being conducted with Dubai and Pakistan, traders said. Tempering the upside in canola will be strong technical resistance in the January contract at C$411 to $412 per metric ton. Brokers said if that resistance in the Jan contract can be penetrated a further upward spurt can be expected. The strong Canadian dollar early Monday was viewed as an undermining price influence for canola. Reduced domestic crusher demand because of the salmonella issues with the US also was seen limiting the upside in the commodity, brokers said. Uncertainty regarding Canadian canola exports to China due to blackleg plant disease restrictions also was keeping the upside in canola restrained, brokers said. As of 9:47 am EST, there were 1,656 canola contracts traded. As of 9:47 am EST, no western barley contracts had been traded |
