ICE Canola Futures Firm As CBOT Soybeans Seen Up
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| January 10, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at 9:28 EST. Much of the early support in canola was associated with the gains seen overnight in e-CBOT soybean activity and Matif rapeseed values, market watchers said.
A small improvement in domestic crusher demand helped to influence some of the strength in the nearby contracts. The lack of significant hedges also provided some minor support for canola futures, brokers said. CBOT corn futures traded 3 to 5 cents/bu higher in overnight trade, while soybeans rose 4 to 6 cents. Steady to slightly firmer calls for the start of the CBOT soybean day session also encouraged some of the buying that lifted the nearby canola contracts on the ICE Canada trading platform, traders said. Small advances in global crude oil futures were an underpinning price influence for canola. Activity in canola was likely to consist of position evening ahead of Wednesday’s latest round of supply/demand balance sheets from the USDA. Routine exporter pricing was also seen adding to the friendly price tone in canola. The upside in canola was being tempered the weakness in Malaysian palm oil and the continued firmness in the Canadian dollar, which was helping to scare off fresh export demand, brokers said. Improved growing conditions in the soybean producing regions of Argentina were also limited the upside in canola, traders said. As of 9:28 EST, there were 689 canola contracts traded. As of 9:28 EST, no western barley contracts had been traded.
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