ICE Canada Review: Weather Concerns Boost Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 1, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Wednesday’s session mainly higher after bouncing around on both sides of the plus/minus line during the day. Weather uncertainties helped to generate some of the upward price action in canola while the upturn in the value of the Canadian dollar was an undermining influence, market watchers said. Activity in canola was described as volatile.
Some pre-positioning ahead of the upcoming September Labor Day holiday weekend was a feature of the activity. Statistics Canada will also release its grain stocks in all positions report as of July 31 on Wednesday, September 8. `Canola contracts found support from steady domestic crusher demand and the pricing of old export business by commercials, brokers said. Adding to the upward momentum were weather concerns, including the late development of the canola crop in parts of western Canada and the increased vulnerability of the crop to an early frost. Firmness in CBOT soyoil futures also provided some good underlying support for canola. Some late day speculative fund demand added to the price advances, brokers said. The upside in canola was limited by a drop off in fresh export demand with the Canadian dollar jumping sharply in value. The inability of soybean values at the CBOT to hold gains also sparked some selling in canola. Spreading was a feature of the activity in canola and helped to augment the volume total. There were an estimated 18,127 canola contracts traded Wednesday, up from the 9,159 contracts that changed hands during the previous session. Western barley futures were unchanged with 50 western barley futures traded on Wednesday. On Tuesday, no barley contracts changed hands. |
