ICE Canola Correcting Higher
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| July 9, 2009 |
| Winnipeg – ICE Canada canola futures were higher in overnight activity, finally seeing a corrective bounce on ideas that the market had become oversold.
After dropping every previous day this week traders thought canola was due for a move higher. The bounce was aided by overnight gains in the US soy complex, Malaysian palm oil, and the European rapeseed market. Crude oil was also showing some strength, which should help underpin oilseed values. However, any short-covering bounce could be seen as a selling opportunity which would limit the upside, said an analyst. In addition, while there are still some dry areas of Alberta and Saskatchewan, North American crop conditions on the whole are generally thought to be favourable. The USDA releases its latest supply/demand tables on Friday, and some position evening ahead of the report was expected on Thursday. About 1,135 canola contracts had traded as of 8:43 CDT, the bulk of that in the November futures month. Western barley futures were untraded in overnight activity, but could find some spillover support from the expected gains in CBOT corn. Prices in Canadian dollars per metric ton at 8:43 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 424.10 | up 7.00 | |
| Jan | 428.70 | up 7.10 | |
| Mar | 436.90 | up 10.20 | |
| Western Barley | |||
| Oct | 170.00 | unch | |
| Nov | 188.00 | unch | |
