ICE Canola Corrects Higher
| 1 min read
| By Phil Franz-Warkentin, Commodity News Service Canada |
| Nov. 29, 2010 |
| Winnipeg – ICE Canada canola futures were mostly stronger Monday morning, seeing a correction from the declines posted at Friday’s close. Overnight advances in the e-CBOT soy complex, Malaysian palm oil, and European rapeseed futures were all spilling over to support canola, according to traders.
Continued weakness in the Canadian dollar early in the day, after the currency declined sharply relative to its US counterpart on Friday, added to the firmer tone in canola. A weaker currency helps improve crush margins, and the domestic crushers remain some of the most solid buyers in the canola market. Dryness concerns for the South American soybean crops were also a supportive factor for the oilseed markets in general, including canola, said traders. The upside in canola was limited by some of the ongoing global economic concerns, such as the tensions between South and North Korea, and the debt issues in Ireland, which were cutting into the risk appetite in the markets. Statistics Canada will be releasing updated production estimates on Friday, December 3, and some caution ahead of the report was also expected to be leading to a choppier tone in canola. About 1,000 canola contracts had traded as of 8:39 CST. Western barley futures were untraded and unchanged Monday morning. Prices in Canadian dollars per metric ton at 8:39 CST: |
| Price | Change | ||
| Canola | |||
| Jan | 533.20 | up 3.80 | |
| Mar | 540.50 | up 5.30 | |
| Nov | 492.50 | dn 1.50 | |
| Western Barley | |||
| Dec | 185.00 | unch | |
| Mar | 185.00 | unch | |
