ICE Canada Review: Weather issues prop up canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 7, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session with good advances as weather uncertainty across the Canadian prairies prompted good buying interest in the commodity, market watchers said. Gains in the CBOT soybean complex helped to underpin canola values.
Some position evening ahead of the Statistics Canada grain stocks in all positions report as of July 31 on Wednesday, September 8 and new USDA supply/demand tables on Friday, September 10, was evident. Wet weather across parts of western Canada continued to cause delays in the harvest of the canola crop, leaving numerous fields vulnerable to an early frost. Frost warnings from various weather services for parts of the Canadian prairies overnight Monday And later this week also helped to influence the upward price action, brokers said. The buying back of positions ahead of the Stats Can report Wednesday morning helped to influence the upside in canola as did the advances seen in CBOT soybean and soyoil futures, traders said. The slow pace of farmer deliveries helped to underpin canola futures as did weakness in the Canadian dollar, which has again stimulated domestic crusher demand as well as the covering of old export business. Selling by speculative accounts limited the upward price action. Spreading was a feature of the activity in canola and helped to augment the volume total. There were an estimated 11,981 canola contracts traded Tuesday, up from the 10,145 contracts that changed hands during the previous session. Western barley futures were steady to lower with the absence of willing buyers amid light commercial offerings accounting for the weakness, brokers said. There were 25 western barley contracts traded Tuesday. On Friday, no barley contracts changed hands. |
