ICE Canola Futures Resume Upward Climb
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 28, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 9:29 EDT. Strength in the overseas oilseed markets overnight and continued strong demand from end-users helped to fuel the gains seen in canola, industry watchers said.
New contract highs were established in Malaysian palm oil and European rapeseed values overnight which helped to encourage some of the advances in canola. The advances in e-CBOT soybean values overnight and the higher calls for both CBOT soybean and soyoil futures with the start of the North American day session contributed to the strength in canola, brokers said. Chart based speculative and local buying was helping to keep a firm price floor under canola with only light farmer deliveries into the cash pipeline adding to the friendly price atmosphere, traders said. Demand from the domestic sector continues to remain strong, with processors said to be working with favourable crush margins, brokers said. The pricing of old export business to Japan by commercial accounts also continues to underpin canola values. The upside in canola was being limited in part by a small upturn in the value of the Canadian dollar. Profit-taking by a variety of market players and overbought market conditions also continue to restrict the upward price momentum in canola. As of 9:29 EDT, there were 2,094 canola contracts traded. As of 9:29 EDT, no western barley contracts had been traded.
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