ICE Canola Futures Climb On China/Canada Optimism
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 2, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at 9:41 EST, with some of the strength linked to optimism that the meetings between Canadian and Chinese government officials over canola exports progress well, market watchers said.
While no official word has been made available on the outcome of the discussions Friday, the trade is optimistic that some sort of compromise was agreed upon to resolve trade issues and allow canola exports to continue. Canola exports to China are being jeopardized by China’s demand just that all Canadian shipments be certified blackleg-free after November 15. Strength in the overnight oilseed markets helped to generate some support for canola, with the e-CBOT complex up with Malaysian palm oil and European rapeseed futures steady to firmer. Some of the buying in canola also came in anticipation of the higher calls for CBOT soybean and soyoil futures with the start of the North American day session. Supportive outside influences from higher equity and energy markets were also seen as underpinning influences for canola, brokers said. Contributing to the strength in canola is the lack of harvest progress being made in Saskatchewan due to continued wet and cool weather conditions, traders said. Harvest operations were seen picking up this week amid improved weather conditions. Supportive chart signals were also expected to help encourage the upside in canola, brokers said. The upside in canola may be limited by the slightly firmer Canadian dollar early Monday and reduced demand from domestic processors, traders said. As of 9:41 am EST, there were 4,348 canola contracts traded. As of 9:412am EST, 18 western barley contracts had been traded. |
