ICE Canola Futures Firm On Oilseed Gains, Export Interest
| 3 min read
| By Dwayne Klassen, Resource News International |
| April 3, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels as of 9:46 EDT. Some of the upward price action in canola reflected the advances posted in the outside oilseed markets and ideas that further export business was being conducted, market watchers said.
Gains were posted overnight in e-CBOT soybean futures which helped to generate support in canola. The higher calls for CBOT soybean and soyoil values with the start of the North American trading day also influenced some minor strength in canola, traders said. Malaysian palm oil futures were steady to fractionally higher overnight. Small gains in the North American equity sector were also helping to bolster values. Some of the price firmness in canola was also coming from talk of fresh export business. Pakistan and Mexico were said to have purchased a number of cargos of Canadian canola over the past couple of days and there were ideas that some additional business was still left to be completed, brokers said. Routine pricing of old business to Japan was also seen helping to keep a firm price floor under canola. Domestic processors also remain fairly stable buyers of canola and that is helping to generate support, brokers said. Profitable crush margins continue to influence that demand, they added. Ongoing ideas about canola acreage declining this spring instead of climbing from last spring’s record also has was seen as supportive. Market participants also continue to anticipate fresh speculative demand in canola, which has been providing a floor for values as well, traders said. Position evening ahead of the weekend was expected to be a feature of the activity in canola during the remainder of the session. A firmer Canadian dollar in early Friday morning activity was viewed as a minor bearish price influence. Elevator company hedge selling was anticipated later in the session, traders said. As of 9:46 am EDT, there were 912 canola contracts traded. At 9:46 am EDT, no western barley contracts had traded with prices unchanged. Prices in Canadian dollars per metric ton at 9:46 am EDT: Price Change Western Bly |
