ICE Canola Firm, USDA Report Supportive
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| By Phil Franz-Warkentin, Resource News International |
| February 9, 2010 |
| Winnipeg – ICE Canada canola futures were higher Tuesday morning, seeing some follow-through on Monday’s firmer close. Spreading was the dominant feature in the early activity, as participants continue to roll their positions out of the nearby March contract.
The updated supply/demand tables released by the USDA Tuesday morning were seen as supportive for the US soybean and corn markets, which should lend some spillover support to canola, said an analyst. The USDA lowered its ending stocks estimates for both soybeans and corn by slightly more than average trade expectations. Overnight gains in Malaysian palm oil futures were also expected to provided some underlying support for canola. However, ample canola supplies in western Canada may limit the upside in the market. An analyst added that the strong Canadian dollar would also temper any gains in canola. The currency was up by more than half a cent relative to its US counterpart early in the day. About 5,300 canola contracts had traded as of 8:42 CST, with the majority of the activity tied to inter-month spreading. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:42 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 386.50 | up 0.80 | |
| May | 392.30 | up 0.60 | |
| Jul | 398.30 | up 1.80 | |
| Western Barley | |||
| Mar | 149.00 | unch | |
| May | 153.00 | unch | |
