ICE Canola Futures Up On Small Overnight Oilseed Gains
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 14, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels as of 9:47 EDT. Strength in the overseas oilseed markets prompted some light buying of canola with the strength also coming in anticipation of the higher calls for CBOT soybeans with the start of the North American day session, market watchers said.
Small gains overnight in the e-CBOT soybean complex provided some minor support as did the gains seen in Malaysian palm oil futures, brokers said. Some price friendliness was also stemming from price firmness in global crude oil and the equity sector, analysts said. Unfavourable harvest weather in North America was helping to generate some minor support as well, although weather outlooks calling for improved conditions in western Canada by the weekend were limiting the upside price potential, brokers said. Small support in canola was also stemming from the pricing of old export business and the lack of farmer deliveries into the cash pipeline. Traders noted that a fairly sizeable export program continues to be in place for canola, and the need to attract steady deliveries is stimulating improvements in the cash market. Helping to limit the upside in canola was the strong Canadian dollar, with the currency trading above the 97 US cent level early Wednesday. Technical resistance levels were also hindering the upside progress in canola, traders said. Prospects for a larger than anticipated canola harvest in Western Canada was also weighing on trade sentiment. As of 9:47 am EDT, there were 4,554 canola contracts traded. As of 9:47 am EDT, no western barley contracts had been traded. |
