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Pick Up in Demand Helps Canola
23.03.2010 11:06 "Agro Perspectiva" (Kyiv) —
A pick up in commercial demand and a weaker Canadian dollar helped ICE Canada canola futures close mostly higher today.
The buying back of previously sold positions by a variety of market participants contributed to the strength in canola.
Some of the commercial demand was said to be covering fresh domestic processor needs, given that the weaker Canadian dollar helped to improve crush margins, brokers said. The commercial interest was also said to be covering previously conducted export business with Japan and Mexico, analysts said.
Strength in CBOT soybean and soyoil futures also spilled over to provide some underlying support for canola.
The implementation of spring road restrictions was a supportive price influence, but did little to stop the pricing of future deliveries to the cash pipeline, traders said.
May canola climbed $3.30 to $381.10, while July gained $3.20 to $386.50.
The upside in canola was also limited early by the declines seen in Malaysian palm oil futures and by sentiment that canola acreage in Western Canada will be up significantly this spring.
The ongoing harvest of a record sized soybean crop in Brazil and Argentina helped to undermine canola values.
Western barley futures were little changed in non-existent activity. The May and July barley contracts closed steady at $154 and $145.
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