ICE Canola Futures Climb On Outside Market Firmness
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 8, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels as of 9:49 EDT. Much of the strength being displayed by canola was reflecting outside market influences, market watchers said. Gains in equity markets overnight along with early advances in the energy and metal sectors were seen as supportive.
Few market participants were willing to establish large positions ahead of Friday’s release of USDA supply/demand reports. Small gains in e-CBOT soybean complex values overnight aided the advances in canola as did slightly higher European rapeseed futures. Some of the buying in canola also came in anticipation of CBOT soybean futures starting the North American day session on a firmer footing, brokers said. Adding to the strength in canola will be nervousness about the cold and wet conditions which were preventing producers in western Canada from finishing up the canola harvest, analysts said. A drop off in farmer deliveries into the cash pipeline and exporter pricing of previously conducted business was also seen as underpinning price influences. The upside in canola was expected to be limited by the large crop prospects and the firmer Canadian dollar in early Thursday morning activity. Bearish technical signals and a drop off in demand from the domestic processing sector were also seen restraining any price gains in canola, brokers said. As of 9:49 am EDT, there were 494 canola contracts traded. As of 9:49 am EDT, no western barley contracts had been traded. |
