ICE Canola Futures Gain As Wheat Advances
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at 9:33 EDT. Strength in US wheat futures in overnight activity along with a small pick up in commercial demand allowed canola values to be pushed higher, market watchers said.
Activity in canola was seen as light and choppy, with position evening ahead of the weekend a feature. Wheat futures in the US continue to be bolstered by concerns about reduced global wheat production because of adverse weather, and has taken the lead in pulling outside commodity markets, including canola, up along with it, analysts said. Gains overnight in Malaysian palm oil futures were supportive as were the higher calls for CBOT soybean and soyoil values with the start of the North American day session, brokers said. Steady domestic crusher demand and the pricing of old export business was helping to keep a firm floor under canola. The upside in canola was being limited by steady elevator company hedge selling and the increased crop production prospects. Steady harvest progress of the canola crops in western Canada were also restricting some of the price gains. Firmness in the Canadian dollar early Friday was also viewed as an undermining price influence. As of 9:33 EDT, there were 1,226 canola contracts traded. As of 9:33 EDT, no western barley contracts had been traded. |
