ICE Canola Futures Post Strong Gains On USDA Report
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| March 31, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at significantly higher price levels at 9:35 EDT. Tighter than expected supplies of old crop soybeans and confirmation of a drop in planned US soybean area this spring sparked the buying that took canola futures upwards, market watchers said. The figures were part of the slew of USDA reports released early Thursday morning.
The bullish USDA report was expected to cause a sharp rally in CBOT soybean and soyoil futures with the start of the North American day session, traders said. Gains overnight in Malaysian palm oil futures helped to stimulate the price advances seen in canola. The absence of any significant hedge offers by western Canadian grain elevators contributed to the strength in canola as did good commercial demand, believed to be covering old export business and domestic crusher needs, brokers said. Ongoing concerns about the potential for significant delays in seeding crops in western Canada this spring due to excessively wet conditions also provided some of the support, traders said. The buying back of previously sold positions by speculative accounts further underpinned canola values. The upside in canola was tempered by overhead technical resistance and the continued upswing in the value of the Canadian dollar. As of 9:35 EDT, there were 7,214 canola contracts traded. As of 9:35 EDT, no western barley contracts had been traded.
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