ICE Canola Recovers Higher, Weather Still Supportive
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| By Phil Franz-Warkentin, Resource News International |
| Sept. 22, 2010 |
| Winnipeg – ICE Canada canola futures were stronger Wednesday morning, recovering most of Tuesday’s declines as the recent losses were largely seen as a buying opportunity.
While forecasts calling for improved harvest conditions in western Canada were behind some of yesterday’s weakness in canola, there was a lack of follow-through selling in the market overnight and participants were said to be taking the slight downturn as a buying opportunity. An analyst said the technical bias remains to the upside in canola, accounting for some of the early strength in the market. In addition, there are still enough concerns about cool, wet weather in western Canada to keep a weather premium in the futures. Calls for a higher start to the North American session for the CBOT soy complex were providing some underlying support to canola, according to traders. Malaysian palm oil futures were also relatively firm in overnight trade. A weaker tone in the US dollar internationally was also providing some underlying support for the commodity markets, according to traders. However, the weak US dollar caused the Canadian currency to strengthen, limiting the potential advances in canola. About 1,250 canola contracts had traded as of 8:26 CDT. Western barley futures were untraded and unchanged Wednesday morning. Prices in Canadian dollars per metric ton at 8:26 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 475.50 | up 2.30 | |
| Jan | 481.20 | up 3.70 | |
| Mar | 484.30 | up 3.80 | |
| Western Barley | |||
| Oct | 170.00 | unch | |
| Dec | 182.00 | unch | |
