ICE Canola Futures Up On Slow Farmer Sales
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 7, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at 9:55 EST. Much of the upward price action was linked to a small pick up in demand and to the absence of significant farmer sales into the cash pipeline during the weekend, market watchers said.
Some of the upward price action was also related to the gains seen in e-CBOT soybeans and in Malaysian palm oil futures overnight. Helping to generate some minor buying were the higher calls for CBOT soybean and soyoil futures with the start of the North American day session. Some of the demand that surfaced for canola came from the domestic crushers. The covering of previous made canola sales to Japan also helped to encourage some minor advances. China’s state-owned Sinograin also indicated it will increase Canadian canola oil imports next year, the Canadian government said in a release on Saturday after failing to secure broader access to the market for Canada’s exports of the oilseed. Sinograin, the state-owned organization responsible for national reserves of grains and edible oil, plans to import 350,000 tonnes of Canadian canola oil in 2010, an increase of 200,000 tonnes. The upside in canola was being limited by the strong Canadian dollar and the declines seen in global crude oil futures early Monday, brokers said. Lingering uncertainly about Chinese demand for Canadian canola was also tempering the upside for canola. As of 9:55 am EST, there were 2,978 canola contracts traded. As of 9:55 am EST, no western barley contracts had been traded. |
