ICE Canola Futures Climb On Steady Demand, Neutral Acres
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 26, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at 9:38 EDT. Strength was associated with the gains posted by eCBOT soybeans, Malaysian palm oil and European rapeseed values overnight, market watchers said.
A mostly neutral Statistics Canada acreage survey Monday morning also was seen as mildly friendly for canola. Stats Canada in their first Canadian crop acreage estimates for the 2010 growing season pegged canola area at 16.99 million acres well below pre report estimate that were as high as 17.5 to 18.0 million. StatCan data is based on its survey of 13,800 Canadian farmers from March 24 to March 31. Additional support in canola was coming from sentiment that CBOT soybean futures would be higher with the start of the North American day session, traders said. The slow down in farmer deliveries, as producers concentrate on spring fieldwork was also providing some underlying support to canola. Ongoing talk of fresh export business to China and/or Pakistan was also generating some strength for the commodity. A number of participants also remain short canola, and canola is subject to short-covering rallies as a result, brokers said. A slow down in the planting of the crops across western Canada due to cool temperatures and precipitation also had underpinning price potential, analysts said. The moisture was welcomed where received, but puts the brakes on field operations for the moment. More rain is anticipated over a wide swath of dry areas starting Wednesday and into Friday. The upside in canola was being limited by the large global supply of oilseeds with the strong Canadian dollar also a price hindrance. As of 9:38 am EDT, there were 717 canola contracts traded. As of 9:38 am EDT, no western barley contracts had been traded. |
