Nearby ICE Canola Futures Up On Outside Oilseeds
| 2 min read
| By Dwayne Klassen, Resource News International |
| December 4, 2009 |
| Winnipeg – The nearby January and March canola contracts on the ICE Futures Canada platform were trading at higher levels at 9:41 EST. Strength was related to the small advances posted overnight in e-CBOT soybean futures and the mostly firmer tone in Malaysian palm oil, market watchers said.
Most of the other contracts were on the defensive amid larger than anticipated Canadian canola output and ongoing concerns about demand. Some evening up of positions ahead of the weekend was a feature of the activity. Trade was seen as extremely choppy. Some minor support in the nearby canola contracts was also stemming from the higher calls for CBOT soybean and soyoil futures with the start of the North American day session, brokers said. The reluctance of producers in western Canada to deliver canola into the cash pipeline was helping to keep the nearby months firm. Favourable crush margins were also supportive. Support in the nearby months was also being tied to news that a vessel was being loaded with canola destined for China. This has led to sentiment that China’s embargo against Canadian canola imports due to blackleg contamination may be close to being resolved. Canada’s Prime Minister Stephen Harper is in China this week and exporters confirmed the embargo was something he intended to raise with Chinese officials, brokers said. They said there is a great deal of hope that Harper’s visit to China this week can resolve the issue with China, but there has been no official announcement yet. The upside in canola was being tempered by the bearish Statistics Canada production estimate released Thursday morning. The government agency pegged 2009/10 (Aug/Jul) canola output at 11.825 million metric tons, which was at the high end of pre-report estimates and well above the previous 2009/10 projection of 10.3 million. Strength in the Canadian dollar early Friday was an undermining price influence on canola as well, traders said. As of 9:41 am EST, there were 927 canola contracts traded. As of 9:41 am EST, no western barley contracts had been traded. |
