ICE Canola Futures Up Slightly On Carryover Buying
| 1 min read
| By Dwayne Klassen, Resource News International |
| July 16, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to fractionally higher levels at 9:38 EDT. Light carryover buying from the sharp advances seen on Thursday helped to generate some of the upward price action, market watchers said.
Ongoing crop concerns in western Canada and the adverse weather conditions for the European rapeseed crop also continued to provide some underlying support for canola futures, brokers said. Early weakness in the value of the Canadian dollar was also seen as beneficial for prices. Bullish chart signals and small gains overnight in Malaysian palm oil also were contributing to the strength in canola. However, the upside in canola is being limited by ideas values were due for a downward correction after the recent sharp gains. Weakness in eCBOT soybean values overnight and a sharp sell-off in European rapeseed futures were also putting the brakes on any sharp push to the upside in canola, analysts said. Steady to lower calls for CBOT soybean and soyoil values with the start of the North American day session also were an undermining price influence. Farmer selling, encouraged by the recent advances, was also tempering the upside in canola. Ideas that the market may be vulnerable to a profit-taking correction also helped keep the advances in check. As of 9:38 EDT, there were 2,130 canola contracts traded. As of 9:38 EDT, no western barley contracts had been traded. |
