ICE Canola Edges Higher On Weather Worries
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| By Phil Franz-Warkentin, Resource News International |
| June 7, 2010 |
| Winnipeg – ICE Canada canola futures were posting small gains Monday morning after trading within a narrowly mixed range in overnight activity. Concerns about excessively wet weather conditions across western Canada helped provide some support for the market.
The wetter-than-normal weather across most of western Canada continues to cause seeding delays and crop damage to already seeded fields. The unfavourable weather will likely mean the canola crop will be smaller than originally thought, which should be supportive for prices, according to traders. However, crop conditions for the US soybean crop remain reasonably good, and the expectations for a steady to weaker opening for the CBOT soy complex could weigh on canola. Overnight losses in Malaysian palm oil and European rapeseed futures could also put some spillover selling pressure on canola. The Canadian dollar was slightly firmer Monday morning, which was also bearish for canola values. About 1,440 canola contracts had traded as of 8:37 CDT, with the July/November spread the feature of the early activity. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:37 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 376.80 | up 0.90 | |
| Nov | 382.00 | up 0.90 | |
| Jan | 386.70 | up 0.60 | |
| Western Barley | |||
| Jul | 147.50 | unch | |
| Oct | 145.50 | unch | |
