ICE Canola Firm In Quiet Trade
| 1 min read
| By Phil Franz-Warkentin, Commodity News Service Canada |
| Nov. 25, 2010 |
| Winnipeg – Canola contracts traded on the ICE Futures Canada platform were stronger at 10:42 CST Thursday in relatively quiet trade. Spreading helped boost the volume totals in the market, but outright activity was on the thin side as the closure of the US markets for Thanksgiving had many participants on the sidelines in Canada as well.
Overnight gains in Malaysian palm oil futures, along with the firmer tone in crude oil, provided some underlying support for canola, according to a broker. Ideas that canola needed to "catch-up" after lagging soybeans to the upside on Wednesday also helped underpin the market. Routine Japanese pricing and a lack of significant farmer selling provided further support for canola, according to a broker. Concerns about the dry growing conditions in the main soybean producing regions of Brazil and Argentina also helped to inject some support into canola. However, the upside was limited as traders were reluctant to push values too far with the US markets closed. Ongoing strength in the Canadian dollar, which was only a cent away from parity with its US counterpart on Thursday, also tempered the gains in canola. At 10:42 CST, about 8,000 canola contracts had changed hands, with spreading accounting for nearly 7,000 of the contracts traded. Commercials were said to be the largest participants in the spread activity. Western barley futures were untraded and unchanged at midsession. Prices in Canadian dollars per metric ton at 10:42 CST: |
| Price | Change | ||
| Canola | |||
| Jan | 539.70 | up 3.10 | |
| Mar | 544.60 | up 2.80 | |
| Nov | 498.00 | unch | |
| Western Barley | |||
| Dec | 180.00 | unch | |
| Mar | 185.00 | unch | |
