ICE Canola Futures Firm On Outside Oilseed Gains
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 13, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels at 9:46 EST. Strength in the outside oilseed markets overnight helped to generate some small support for canola with the slow pace of farmer deliveries to the elevator system in western Canada helping to bolster values, market watchers said.
Gains were posted overnight in e-CBOT soybeans, as well as in Malaysian palm oil and European rapeseed futures, brokers said. Some of the buying in canola was also linked to the higher calls for CBOT soybean futures with the start of the North American day session Friday. Friendly chart signals were also helping to provide a firm floor for canola, traders said. Some evening up of positions ahead of the weekend was likely to be a feature of the activity during the remainder of the session. The upside in canola will be limited by strength in the Canadian dollar early Friday and by weakness in global crude oil futures, brokers said. The gains in canola could also be limited by early projections for a record South American crop, led by favorable conditions so far in Brazil. Continued uncertainty surrounding China’s demand for Canadian canola also will be a restrictive price influence, traders said. China’s decision to implement new blackleg plant disease controls on canola imports were seen cutting Canada’s canola shipments to that country by 70%. As of 9:46 am EST, there were 575 canola contracts traded. As of 9:46 am EST, no western barley contracts had been traded. |
