ICE Canada Review: Harvest Delays, Cool Temps Boost Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform ended Wednesday’s session on a stronger footing with continued worries about the slow pace of harvest operations and the arrival of cold temperatures in western Canada providing the upward price momentum, market watchers said. Commodity fund accounts were the featured buyers of canola during the day.
The slow pace of development due to the cool and wet weather conditions has pushed the harvest pace back and at the same time left the crop vulnerable to quality downgrades due to the possibility of frost, brokers said. A killing frost has been forecast for much of the canola growing regions of Western Canada by the weekend. The advances in canola were also encouraged by the firm price tone seen in CBOT soybean and soyoil values. The pricing of old export business by Japan, a drop off in farmer deliveries into the cash pipeline and some minor domestic processor demand also contributed to the strength seen in canola, brokers said. The upward price momentum in canola was tempered by the upturn in the value of the Canadian dollar and the continued absence of fresh export business, traders said. Some profit-taking at the highs along with some chart based liquidation selling further restricted the price advances in canola. The gains in canola were also tempered by the much larger than anticipated ending stocks forecast for the 2009/10 (Aug/Jul) crop year from Statistics Canada and the need to absorb those supplies by the industry, analysts said. There were an estimated 10,200 canola contracts traded Wednesday, down from the 17,869 contracts that changed hands during the previous session. Western barley futures were unchanged and untraded Wednesday. On Tuesday, no western barley contracts changed hands. |
