ICE Canola Futures Up As Weather/Exports Buoy Values
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 14, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher levels at 9:29 EDT. Strength in canola was encouraged by the heavy precipitation received across already wet canola growing regions of western Canada and on continued talk of fresh export demand, market watchers said.
Gains overnight in Malaysian palm oil futures helped to stimulate some of the upward price momentum as did the gains in e-CBOT soybean futures, brokers said. The higher calls for CBOT soybean and soyoil values with the start of the North American day session was also an underpinning price influence. Adding to the upward price action in canola was steady domestic crusher demand and the pricing of old export business. The ability of the November canola future to penetrate significant technical resistance at C$440 was also helping to fuel some of the price advances, brokers said. They noted that it will be interesting to see if the contract can hold above that level. Fresh speculative demand was helping to generate the upward price momentum. The upside in canola was expected to be limited by profit-taking, particularly after some pretty sharp gains over the past couple of days. Elevator company hedge selling was also anticipated as producers continue to take advantage of attractive cash bids being offered by grain companies, brokers said. A steady to firm Canadian dollar early Wednesday morning was only seen as a minor undermining price influence, analysts said. As of 9:29 am EDT, there were 2,234 canola contracts traded. As of 9:29 am EDT, no western barley contracts had been traded. |
