ICE Canada Review: Weather woes underpin canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 20, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session mainly higher although the advances were trimmed late in the day by profit-taking and overbought price sentiment, market watchers said.
Strength in canola for most of the session was associated with the frost damage to crops late last week and during the weekend. A good portion of the canola crops in Alberta and Saskatchewan were said to still be immature which would have resulted in a yield reduction as well as quality downgrades, brokers said. Commodity fund accounts were some of the featured buyers of canola. Adding to the strength in canola were the continued wet conditions in western Canada which are delaying harvest operations. Further advances in canola were stimulated by the strong gains in CBOT soybean and soyoil values and talk of fresh export demand for Canadian canola. Confirmation of any fresh business, however, was not available. Steady domestic crusher demand and the pricing of old export business also provided a firm floor for canola futures. The upside in canola was offset in part by a pick up in elevator company hedge selling. Spreading was a feature of the activity in canola and helped to augment the volume total. There were an estimated 15,067 canola contracts traded Monday, down from the 21,266 contracts that changed hands during the previous session. Western barley futures were untraded. There were no barley contracts traded on Monday. On Friday, 20 western barley contracts changed hands. |
