ICE Canada Review: Frost Outlook Underpins Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session with small advances. Strength was associated with the continued wet weather which has delayed the development and harvest of the canola crop in western Canada, market watchers said. Weather outlooks calling for a killing frost by the weekend in parts of Alberta and Saskatchewan also helped to influence some of the upward price action.
Activity in canola was on the lighter side compared with Friday’s volume total. Canola contracts managed to move higher in overnight activity in response to the advances seen in Malaysian palm oil and European rapeseed futures. Gains in CBOT soybean and soyoil values also helped to prop up canola prices, brokers said. Some light domestic crusher demand helped to underpin canola futures as did the pricing of old export business to Japan by commercials, brokers said. Elevator company hedge selling was on the light side, but was enough to slow the price gains in canola, traders said. The continued uptrend in the value of the Canadian dollar, which was scaring off fresh export demand, further limited the upward price momentum. Some light chart based selling also tempered the price advances seen in canola. Spreading was a feature of the activity and helped to augment the volume total. There were an estimated 10,835 canola contracts traded Monday, down from the 20,123 contracts that changed hands during the previous session. Western barley futures were unchanged and untraded Monday. On Friday, no western barley contracts changed hands. |
