ICE Canola Futures Up, C$ Depreciation Supportive
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 16, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels as of 9:44 EDT. Gains overnight in the outside oilseed markets helped to stimulate some upward price action in canola as did the depreciation of the Canadian dollar, industry watchers said. Position evening ahead of the weekend was expected to be a feature of the activity.
The e-CBOT soybean complex managed to post small advances overnight with Malaysian palm oil and European rapeseed futures also finding some small support. Some of the buying in canola also came in anticipation of the gains forecast for CBOT soybeans and soyoil with the start of the North American day session, brokers said. Additional strength in canola was stemming from the strong export program through to the end of the month and beyond, traders said. The reluctance of producers to sell into the cash market also offered canola some underlying support. Contributing to the strength in canola were oversold price sentiment and the pricing of old export business, traders said. Tempering the upside in canola were weather outlooks calling for warmer and drier conditions to hit much of the Canadian grainbelt on the weekend. Producers were seen finishing up their harvest operations pretty quickly if the weather stays dry, brokers said. As of 9:44 am EDT, there were 1,932 canola contracts traded. As of 9:44 am EDT, no western barley contracts had been traded. |
