ICE Canola Edges Higher In Choppy Trade
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| By Phil Franz-Warkentin, Resource News International |
| June 23, 2010 |
| Winnipeg – ICE Canada canola futures were steady to slightly firmer Wednesday morning in thin trade. The release of Statistics Canada’s latest acreage report created more questions than answers for the market, as the survey was conducted at a time when producers still thought they’d be able to get this year’s crop in the ground.
Statistics Canada pegged intended canola area at 17.9 million acres, which compares with the previous estimate of 16.9 million, and the year ago level of 16.2 million acres. However, the survey was conducted between May 25 and June 3, at a time when producers were still confident they would be able to plant this year’s crop. The weather over the past few weeks has left many of those acres unseeded and most market analysts expect actual canola plantings will end up below 15 million acres. Many fields are also dealing with flooded out spots, which should lead to further reductions in yield potential. The uncertain weather conditions should keep canola values well supported, according to traders. Sharp weakness in the Canadian dollar Wednesday morning was also lending some underlying support to canola, making the commodity more attractive to export customers and helping improve domestic crush margins. Calls for a slightly weaker start to the North American session for CBOT soybeans could put some downward pressure on canola, according to traders. Technical resistance was also expected to be a limiting factor in canola, as the market remains hard-pressed to move above its nearby highs. About 770 canola contracts had traded as of 8:44 CDT. Western barley futures were untraded and unchanged early in the day. Prices in Canadian dollars per metric ton at 8:44 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 426.70 | unch | |
| Nov | 425.30 | up 0.10 | |
| Jan | 425.00 | up 0.40 | |
| Western Barley | |||
| Jul | 155.00 | unch | |
| Oct | 150.40 | unch | |
