ICE Canola Futures Gain As Prices Seen As Oversold
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| February 17, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 9:43 EST. Sentiment that values have corrected too far to the downside, helped to influence some of the buying that surfaced in canola, market watchers said.
Adding to the support in canola were the advances posted in eCBOT soybean futures overnight and from the advances seen in European rapeseed values. The higher calls for CBOT soybean futures with the start of the North American day session also contributed to the strength in canola, brokers said. The uncovering of fresh demand at the lows, helped to generate the price gains seen in canola. Both exporters and domestic crushers were said to have been noted buyers early in the day, analysts said. Concerns about canola acreage in western Canada also influenced some of the support seen in the commodity, brokers said. The upside in canola was being limited by light speculative profit-taking and the large South American soybean supply situation. Losses overnight in Malaysian palm oil and firmness in the Canadian dollar early Thursday morning also were undermining price influences, traders said. Activity in canola was described as choppy ahead of Monday’s holidays. Monday is Louis Riel Day in Manitoba, Family Day in Alberta/Saskatchewan/Ontario and Presidents’ Day in the US. As of 9:43 EST, there were 1,800 canola contracts traded. As of 9:43 EST, no western barley contracts had been traded.
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