ICE Canola Corrects Higher In Most Months
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| By Phil Franz-Warkentin, Resource News International |
| June 30, 2010 |
| Winnipeg – ICE Canada canola futures were mixed Wednesday morning. Most months were seeing a correction higher from Tuesday’s declines, although the nearby July contract was lower as participants square up their positions in the contract before it becomes the delivery month.
Calls for a firmer start in CBOT soybeans were providing some underlying support for canola, according to traders. Updated USDA acreage estimates came in a little higher than expected for soybeans, but stocks were tighter than expected. Continued weakness in the Canadian dollar, after it dropped sharply relative to its US counterpart on Tuesday, also accounted for some of the buying interest in canola. A lack of farmer selling also remained a supportive price influence, as the ongoing weather concerns in western Canada has made producers reluctant to do much forward pricing until they have a better idea about this year’s production. However, crop conditions were said to be turning a little more favourable in some areas, reducing the need to increase the current risk premiums in the market, according to traders. About 650 canola contracts had traded as of 8:41 CDT. Western barley futures were untraded and unchanged early in the day. Prices in Canadian dollars per metric ton at 8:41 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 425.00 | dn 6.40 | |
| Nov | 418.70 | up 4.40 | |
| Jan | 420.00 | up 4.30 | |
| Western Barley | |||
| Jul | 163.00 | unch | |
| Oct | 150.40 | unch | |
