ICE Canola Climbs On Oversold Ideas, CBOT Soy Gains
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 16, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher levels with strength associated with sentiment that the losses seen on Monday were overdone and that an upward correction was needed, market watchers said. Strength in CBOT soybean futures helped to contribute to the upward price movement.
Routine exporter pricing helped to provide a firm floor for most canola contracts as did a drop off in the level of producers delivering supplies into the cash pipeline, brokers said. Tight old crop canola supplies and expected tightness for new crop canola helped to generate some support ion the commodity, traders said. The upside in canola was being limited by weather outlooks which are calling for increased chances of precipitation in the dry growing regions of west-central Saskatchewan and east- Central Alberta, traders said. The longer-range forecasts were also calling for beneficial moisture in those dry regions. The gains in canola were also being limited by the absence of fresh export business and only minimal demand for canola from the domestic crushers. There were an estimated 5,281 canola contracts traded at 10:44 CDT. Of the contracts traded, 2,024 were spread related. There were 2 western barley futures traded as of 10:44 CDT, with all of that action spread related. Prices in Canadian dollars per metric ton at 10:44 am CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 464.00 | up 2.00 | |
| Nov | 458.80 | dn 0.80 | |
| Jan | 466.10 | up 2.00 | |
| Western Barley | |||
| Jul | 162.00 | unchanged | |
| Oct | 178.00 | unchanged | |
