ICE Canola Futures Up Slightly On CBOT Ideas
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| February 7, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at 9:38 EST. Overnight strength in the outside oilseed markets helped to provide some canola contracts with support as did continued demand from the commercial sector, industry watchers said.
The gains in e-CBOT soybean values overnight helped to generate some support as did the advances posted in European rapeseed values, traders said. Malaysian palm oil values were fractionally weaker, but were still trading near contract highs. The higher calls for CBOT soybean and soyoil futures with the start of the North American day session was helping to stimulate some upward price action in canola, brokers said. Domestic crusher buying was also evident and contributed to the strength. Some routine pricing of old export business to Japan was also an underpinning price influence. Supply concerns for global oilseeds was also providing some underlying support for canola. The need to ensure enough canola acres in western Canada was adding to the support in the market. However, elevator company hedge selling and the continued firmness of the Canadian dollar were undermining price influences for canola, traders said. Sentiment that canola was in need of a correction after recent advances, also was limiting any move to the upside. Profit-taking by speculative accounts was also evident. As of 9:38 EST, there were 458 canola contracts traded. As of 9:38 EST, no western barley contracts had been traded.
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