ICE Canola Futures Move Higher On Outside Oilseeds
April 2, 2009
By Dwayne Klassen, Resource News International
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels as of 9:44 EDT. Strength was associated with the advances posted overnight in the outside oilseed markets and on a pick up in demand, market watchers said.
Good gains were seen overnight in e-CBOT soybean values, Malaysian palm oil and Matif rapeseed values. Some of the buying in canola also came in response to the higher calls for CBOT soybean futures with the start of the North American day session, traders said.
Advances in global crude oil and strength in the North American equity markets early Thursday were also viewed as supportive price influences for canola, brokers said.
Canola futures were also finding a firm floor to work with because of the smaller than expected
US planting intentions number and tightening old crop soybean supplies.
New crop canola futures were also being underpinned by ideas that the amount of area seeded to canola this spring in Western Canada may not be as large as first anticipated. The move was associated with the situation with US soybeans, brokers said. Some market analysts in Canada were now anticipating that canola area in Canada this spring may be down slightly from the 2008 level.
Additional strength in the oilseed markets, including canola, was coming from optimism on the global economic front from the G-20 meetings that are presently underway, brokers said.
Some commodity fund buying was also being anticipated, brokers said.
The upside in canola will be limited in part by strength in the Canadian dollar early Thursday and by bouts of profit-taking.
As of 9:44 am EDT, there were 3,963 canola contracts traded.
At 9:44 am EDT, no western barley contracts had traded with prices unchanged.
Price Change
Canola May 429.00 Up 4.30
Jul 433.00 Up 4.20
Nov 436.90 Up 3.50
Western Barley
May 142.80 unchanged
Jul 149.60 unchanged
