Nearby ICE Canola Contracts Up On Export Pricing
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a mixed range with the nearby months up and the deferred contracts lower. Support in the nearby May and July contracts was coming from export pricing by commercials, market watchers said.
"Essentially, the support in the two nearbys is coming from commercial spreading of new export business," a broker said. He said the export business was linked to additional purchases of Canadian canola by Pakistan. Pakistan and China were both said to have purchased Canadian canola earlier in the week for an unspecified delivery date. Canola had come under early selling pressure from the declines seen overnight in Malaysian palm oil and from the early selling seen in CBOT soybean and soyoil values, traders said. Strength in the Canadian dollar and profit-taking after Monday’s gains also helped to undermine canola values. Some hedge selling by grain companies was also evident early, but has since dried up, which has helped to underpin the nearby months, brokers said. The retracement of the declines in both CBOT soybeans and soyoil was also being viewed as supportive for canola futures, traders said. Position evening ahead of Wednesday’s supply/demand tables from the USDA was also a feature of the activity in canola. There were an estimated 11,959 canola contracts traded at 10:36 CST. Of the contracts traded, 9,244 consisted of spreads. There were no western barley futures traded as of 10:36 CST |
