ICE Canola Futures Rise As Weather Remains Key Focus
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher levels at 9:28 EDT. The prospect of canola output in western Canada declining further because of recent heavy precipitation was influencing the upward price charge, market watchers said.
The recent rally has also attracted fresh speculative buying, which has only served to help send canola futures higher. Support in canola was also stemming from the gains seen in eCBOT soybean futures overnight and from the new contract highs established in European rapeseed values, brokers said. Advances in Malaysian palm oil overnight also were an underpinning price influence. Adding to the support in canola were the higher calls for CBOT soybean and soyoil futures with the start of the North American day session. The ability of the November canola contract to push above resistance at C$440 also has attracted fresh buying with market participants now expecting the future to test new resistance at C$460. The upward push in canola was likely to be tempered by steady hedge selling by elevator companies as producers remain good sellers in view of the recent up trend in cash bids. Sentiment that canola was due for a downward correction after recent sharp gains, also was seen restricting the upward price action, brokers said. As of 9:28 EDT, there were 2,373 canola contracts traded. As of 9:28 EDT, no western barley contracts had been traded |
