ICE Canola Futures Up On Slow Movement, Crusher Demand
Dwayne Klassen, Resource News International
| December 9, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at 9:35 EST. Some of the upward price action was associated with the absence of producer deliveries and steady domestic crusher demand, market watchers said.
The reluctance of producers to sell reflects the arrival of bitterly cold Arctic conditions to much of western Canada, traders said. Routine exporter buying also provided some light underlying support as did the strength in global crude oil futures. Some evening up of positions ahead of Thursday’s USDA supply/demand update also was a feature of the activity. The upside in canola was being limited by the losses seen in Malaysian palm oil futures overnight and the mostly weaker tone in e-CBOT soybeans, brokers said. The mixed calls for CBOT soybean futures with the start of the North American day session helped to send some participants to the sidelines. Talk of good weather conditions for the development of the South American soybean crop was also limiting the upside price potential in canola. Firmness in the Canadian dollar early Wednesday was also an undermining price influence on canola. As of 9:35 am EST, there were 1,426 canola contracts traded. As of 9:35 am EST, no western barley contracts had been traded |
