ICE Canola Futures Climb On Oversold Sentiment
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 19, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at 9:46 EDT. Sentiment that canola values were oversold and in need of an upward correction helped to generate some support, market watchers said.
A pull-back in the value of the Canadian dollar early Wednesday was also viewed as an underpinning price influence, with the weaker currency stimulating demand from the export and domestic sectors, brokers said. Strength in canola was also coming from the absence of significant hedge selling by elevator companies, as producers continue to concentrate on spring seeding operations rather than marketings. The buying back of previously sold positions by a variety of market participants was also contributing to the gains seen in canola, traders said. Some minor concern over weather outlooks calling for a return of cool conditions in the western regions of the Canadian prairies during the weekend also provided some small support. The upside in canola, however, was being limited by the losses seen in Malaysian palm oil futures overnight. Losses in global crude oil values also were an undermining influence. The quick pace of planting the record sized canola crop in western Canada helped to restrict the price advances. Mixed calls for CBOT soybean and soyoil values with the start of the North American day session were also limiting the buying interest in canola, traders said. As of 9:46 am EDT, there were 1,955 canola contracts traded. As of 9:46 am EDT, no western barley contracts had been traded. |
