ICE Canola Firm In Early Trade
| 1 min read
|
|
| By Phil Franz-Warkentin, Resource News International |
| June 3, 2010 |
| Winnipeg – ICE Canada canola futures were steady to slightly higher Thursday morning, finding some spill-over support from the gains in the outside commodity and equity markets. Concerns about crop conditions in western Canada also helped underpin the futures, although the strength in the Canadian dollar tempered any upward moves in canola, according to traders.
Short-covering on oversold price signals accounted for some of the buying interest in the thinly traded canola market, according to traders who said the calls for a higher start in the CBOT soy complex were providing some spill-over support for canola. The uncertain weather conditions across western Canada also remain relatively supportive for canola, with talk of seeding delays in some areas and damaged crops in others due to excess moisture. However, conditions are looking good in other areas and traders remain divided as to the eventual impact on production. After climbing sharply higher relative to its US counterpart on Wednesday, the Canadian dollar continued to show some strength Thursday morning. The firm currency cuts into domestic crush margins and makes Canadian canola less attractive to export customers. Traders said the currency was limiting the upside in canola, keeping prices within a narrow range. About 280 canola contracts had traded as of 8:43 CDT. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:43 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 372.90 | up 0.40 | |
| Nov | 378.10 | up 0.20 | |
| Jan | 382.90 | unch | |
| Western Barley | |||
| Jul | 147.50 | unch | |
| Oct | 145.50 | unch | |
