ICE Canola Futures Jump Upwards On Export Speculation
| 2 min read
| By Dwayne Klassen, Resource News International |
| April 23, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at significantly higher price levels as of 9:53 EDT. Speculation about fresh export demand for Canadian canola prompted much of the upward price jump seen in canola futures overnight, market watchers said.
The export demand speculation was fueled by news Wednesday that the Chinese Government will buy domestic rapeseed for state stockpiles after the May harvest is complete at above current market prices. Brokers here said this will result in Chinese processors heading to the export market to source product since the government is loading up on domestic supplies. The Chinese Government was expected to buy in excess of 3.0 million metric tons of rapeseed for state-owned reserves, leaving the domestic processors short of that much supply. Adding to the export demand were indications that Pakistan has also re-entered the Canadian market looking for canola. Pakistan was reported as having purchased at least two cargoes of Canadian canola earlier this week and were believed to have picked up a couple more cargoes, brokers said. Canola values also found good support overnight from the advances posted in e-CBOT soybean futures. Strength in Malaysian palm oil and Matif rapeseed values contributed to the firm price tone in canola. Some of the advances in canola also came in anticipation of a higher start in CBOT soybean and soyoil values with the start of the North American trading session. Early gains in global crude oil and the North American equity markets further underpinned canola futures. Reports of smaller than anticipated yields in Argentina`s soybean crop were helping to provide a firm price floor for canola values, traders said. Position evening ahead of Friday`s prospective plantings report from Statistics Canada was expected to be a feature of the activity. As of 9:53 am EDT, there were 7,466 contracts traded. At 9:53 am EDT, no western barley contracts had traded with prices unchanged. Prices in Canadian dollars per metric ton at 9:53 am EDT: Price Change W. barley Jul $142.20 unch |
