ICE Canola Futures Rise On Weak C$, Undervalued Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 17, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at 9:46 EST. Some of the upward price action seen in canola was linked to sentiment that values were due for an upward correction and to the weakness in the Canadian dollar, market watchers said.
Support in canola came from sentiment that the commodity was undervalued in comparison to other oilseeds and that an upward correction was required. Helping to underpin canola was the pull-back in the value of the Canadian dollar early Tuesday. The slow pace of farmer deliveries into the cash pipeline also provided a firm floor for canola values, brokers said. There was talk of some fresh export sales being conducted, but confirmation of any fresh Canadian canola business was lacking, traders said. Some light followthrough buying from Monday’s higher close also helped to generate the price gains seen in canola early Tuesday. The upside in canola was being limited by the losses seen in Malaysian palm oil futures overnight were little changed. Favourable precipitation in the soybean growing regions of Argentina were also being viewed as an undermining price influence. Helping to limit the upside in Canadian canola were the new plant disease restrictions implemented by China on all canola imports. Continued issues with Canadian canola meal shipments into the US due to salmonella issues also was seen as a bearish price feature, brokers said. As of 9:46 am EST, there were 1,957 canola contracts traded. As of 9:46 am EST, no western barley contracts had been traded. |
