ICE Canola Rallies On CBOT Soybean Strength
Dwayne Klassen, Resource News International
| January 4, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at a firmer price level at midday with much of the upward price momentum being encouraged by the strength displayed by the CBOT soybean complex, market watchers said.
The early advances in canola were fueled by the gains seen overnight in e-CBOT soybeans and Malaysian palm oil, brokers said. The higher start in CBOT soybean and soyoil futures with the start of the North American day session helped to stimulate the upward price advances in canola. Gains in canola were also being helped along by the higher stock markets, energy and metal sectors. Additional strength in canola was coming from light, routine exporter pricing and improved crush margins which has stimulated demand from domestic processors, traders said. Friendly chart signals were also an underpinning price influence. The upside in canola was being limited by the strong Canadian dollar and the absence of fresh export demand, brokers said. Some light hedge selling by elevator companies was also evident and helped to slow the price advance in canola. The commodity fund demand that was evident in soybean futures at the CBOT was not being experienced in canola, brokers said. There were an estimated 4,766 canola contracts traded at 10:36 CDT. Of the contracts traded 1,950 were spread related. There were no western barley futures traded as of 10:36 CDT |
