ICE Canola Futures Climb On Demand Pick-Up
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 4, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at 9:44 EST, with some of the strength linked to a pick up in demand from the commercial sector, market watchers said.
Basis levels offered by the grain elevators in western Canada have improved significantly and there has been increased speculation about fresh export business being conducted by the canola industry, which has in turn propped up canola values, brokers said. Talk surfaced during Tuesday’s session that fresh business was being booked to either Pakistan or Mexico, traders said. Support in canola was also coming from the advances seen overnight in e-CBOT soybean values, Malaysian palm oil and European rapeseed. Some of the gains in canola were also in anticipation of advances being posted in CBOT soybean and soyoil futures with the start of the North American day session, traders said. Strength in the equity and energy sectors were also considered underpinning price influences. The upside in canola was being tempered by the strength seen in the Canadian dollar early Wednesday and by the improved weather outlooks for the Canadian prairies which should allow producers time to finish up harvest operations. The weather forecasts are calling for sunny skies and warmer temperatures heading into the weekend. The weather conditions are expected to remain sunny into early next week, but temperatures were expected to begin cooling. Also limiting the upside in canola was the lingering uncertainty about exports to China given that country’s desire to implement blackleg restrictions on canola. As of 9:44 am EST, there were 2,024 canola contracts traded. As of 9:44 am EST, no western barley contracts had been traded. |
