ICE Canada Review: Weather Worries Prop Up Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 3, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session with good gains. Ongoing concerns about planting delays and damage to canola crops from excess moisture helped to generate some of the upward price action, market watchers said.
Weather outlooks calling for additional heavy precipitation across the Canadian prairies over the weekend was also an underpinning price influence. The rolling of positions out of the nearby July future and into the November contract was a feature of the activity and helped to augment the volume total, brokers said. The pull-back in the value of the Canadian dollar further influence the price advances seen in canola. Oversold market conditions along with the buying back of previously sold positions by a variety of market participants contributed to the strength displayed by canola, traders said. Steady domestic crusher demand along with the pricing of old export business to Japan by commercials also was supportive. Gains in CBOT soybean and soyoil futures helped to lift canola prices The upside in canola was limited by a pick up in hedge selling, with elevator companies in select locations of the Canadian prairies offering premiums to entice farmer sales, brokers said. Profit-taking at the highs was also evident and further limited the price gains. There were an estimated 13,439 canola contracts traded Thursday, down from 22,014 during the previous session. Western barley futures were untraded and unchanged Thursday. No barley contracts changed hands during the session. On Wednesday, no barley contracts were traded. |
