ICE Canola Futures Up On Cold Temps, CBOT Calls
| 2 min read
| By Dwayne Klassen, Resource News International |
| September 22, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels as of 9:43 EDT. Concerns about cold temperatures overnight in a number of areas in Alberta and parts of Saskatchewan helped to fuel some light buying with the higher calls for the CBOT soybean complex adding to the strength, market watchers said.
Temperatures overnight in southern regions of Saskatchewan and in parts of Alberta were said to have dropped to around the freezing level overnight brokers said. Helping to underpin canola were the advances seen overnight in the e-CBOT soybean complex and Malaysian palm oil futures. Gains in the overseas equity markets and higher global crude oil futures were also seen as supportive. Strength in canola was also coming in anticipation of the higher start in CBOT soybean and soyoil futures with the start of the North American day session, traders said. Continued talk of fresh export demand with China was helping to provide a firm floor for canola, brokers said. Steady domestic crusher demand and the pricing of old export business were also supportive for values. The upside in canola was being limited by the advancing harvest operations in western Canada and indications canola yields were coming in above expectations, brokers said. Steady farmer deliveries of canola into the cash pipeline were also seen as an undermining price influence. Firmness in the Canadian dollar early Tuesday and bearish chart signals were also seen restricting the upward price action in canola, traders said. As of 9:43 am EDT, there were 2,277 canola contracts traded. As of 9:43 EDT, no western barley contracts had changed hands. Traders noted that the tone in western barley futures appears to be down given the increased feed prospects in western Canada and the absence of fresh feedlot demand. |
