ICE Canola Futures See Small Gains On Oversold Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 25, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to slightly higher levels at 9:35 EDT. Sentiment that the losses seen on Thursday were overdone, helped to generate some minor strength, market watchers said.
Gains overnight in e-CBOT soybean futures and the higher calls for CBOT soybean and soyoil values with the start of the North American day session also influenced some mild support, brokers said. The continued wet weather across much of the Canadian prairies and outlooks calling for the precipitation to continue over the next few days was also seen as an underpinning price influence for canola, traders said. Dryness concerns in the northern canola growing regions of Alberta also continue to provide some support. Steady domestic crusher demand and the pricing of old export business to Japan also continued to provide a firm floor for canola values. The upside in canola was likely to be restricted by stiff overhead technical resistance, traders said. The November canola future has been unable to penetrate resistance at C$430 per metric ton, and there are questions about whether participants will make another attempt to push through that level or whether the market is setting itself up for a retracement, brokers said. The excellent growing conditions for the US soybean crop also remain a limiting price influence on canola. As of 9:35 am EDT, there were 681 canola contracts traded. As of 9:35 am EDT, no western barley contracts had been traded. |
