ICE Canola Futures Up On Demand Pick-up
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 18, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at 9:38 EST. Strength in canola was linked to a pick up in demand and to the gains seen in the outside oilseed markets overnight, industry watchers said.
Strong gains were posted overnight in e-CBOT soybean values as well as in Malaysian palm oil values. Helping to generate support in canola were the higher calls for CBOT soybean and soyoil values with the start of the North American day session, brokers said. Adding to the support in canola will be the advances in global crude oil futures and the firmer start seen in the North American equity sector. Fresh speculative fund demand was helping to stimulate the advances in canola, traders said. Contributing to the firm price tone in canola was increased demand from the export sector, with both Japan and Mexico stepping up to the plate to purchase Canadian canola, traders said. The relatively slow pace of farmer deliveries into the cash pipeline was also being seen as supportive for canola, traders said. Some light chart based buying was also anticipated during Wednesday’s session which should help to keep canola on the plus side of the market, brokers noted. However, there is resistance in the nearby January contract in the C$410 to C$411 area. Lingering uncertainty about Canada’s ability to move canola to China due to the implementation of blackleg plant disease restrictions continued to limit the upside in canola. Strength in the Canadian dollar early Wednesday was also being viewed as an undermining price influence. As of 9:38 am EST, there were 2,516 canola contracts traded. As of 9:38 am EST, no western barley contracts had been traded. |
