ICE Canada Review: Canola Up On Continued Weather Concerns
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| By Phil Franz-Warkentin, Resource News International |
| June 22, 2010 |
| Winnipeg – ICE Futures Canada canola contracts closed higher on Tuesday, continuing to find some support from the adverse weather conditions across western Canada that will leave many acres unseeded and likely lead to yield reductions in the remaining fields.
A lack of farmer selling, as producers take a cautious approach towards marketing given the production uncertainty, added to the firmer tone in canola, according to traders. Speculative buying was behind most of the strength, as exporters and domestic crushers were showing some reluctance to buy at the higher levels, according to traders. However, technical resistance was holding at the daily highs. Losses in Chicago soyoil also weighed on canola, according to traders. Statistics Canada will release its latest acreage estimates on Wednesday, June 23, and some positioning ahead of the report was evident in the market. However, the StatsCan survey was conducted a month ago, and traders expected any numbers put out by the government agency would be higher than what actually got in the ground. About 16,878 contracts traded on Tuesday, which compares with Monday when an estimated 18,558 contracts traded. Intermonth spreading was a small feature on the day, as participants continue to roll their positions out of the nearby July contract. Western barley futures were untraded and unchanged on Tuesday, lacking any clear direction. Prices are in Canadian dollars per metric ton. Settlement |
| Price | Change | ||
| Canola | |||
| Jul | 426.70 | up 6.60 | |
| Nov | 425.20 | up 6.20 | |
| Jan | 424.60 | up 6.70 | |
| Western Barley | |||
| Jul | 155.00 | unch | |
| Oct | 150.40 | unch | |
