ICE Canada Review: Canola bolstered by weather issues
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 16, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session with good gains as the continued wet and cool weather conditions across western Canada that have been hampering crop growth and harvest operations kept sellers out of the market, industry watchers said.
The losses in the CBOT soybean complex and bouts of profit-taking, however, limited the upside price potential. The threat of a killing frost in key canola growing regions of the Canadian prairies also provided some strong support, brokers said. The pricing of old export business to Japan and some light domestic crusher demand helped to fuel some of the upward price action. A small drop in the value of the Canadian dollar was also seen as supportive. The upside in canola was limited by the losses seen in CBOT soybean and soyoil futures. Light, but steady levels of hedge selling by grain companies also restricted the price advances, traders said. Some profit-taking and chart related liquidation also kept the gains in canola in check. Spreading was a feature of the activity and helped to augment the volume total. There were an estimated 10,403 canola contracts traded Thursday, up from the 10,200 contracts that changed hands during the previous session. Western barley futures were unchanged and untraded Thursday. On Wednesday, no western barley contracts changed hands. |
