ICE Canola Futures Climb On Frost Warnings
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 10, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels as of 9:41 EDT. Strength was linked to weather outlooks calling for a light frost over the next two nights across portions of central and northern Alberta along with northern Saskatchewan as a high pressure settles over this region, market watchers said.
The continued late development of the canola crop in Western Canada has left it extremely vulnerable to frost damage. In the early activity the nearby November and January contracts were the mostly actively traded. Some position evening ahead of the USDA’s latest round of supply/demand reports, scheduled to be released early Friday, was also anticipated. Canola futures were also finding support from the pricing of new business to Mexico and reports that Chinese buying of Canadian canola has begun to pick up, brokers said. Reports circulating in the trade suggest that China has picked up 250,000 metric tons of Canadian canola, analysts said. Other countries reportedly seeking out Canadian canola include Dubai and Pakistan. Adding to the strength in canola were ideas that values were oversold and in need of an upward correction, particularly after recent sharp losses. A minor downturn in the value of the Canadian dollar was also providing some minimal support to canola early in the session. The upside in canola will be slowed by the prospects of a large Canadian canola harvest and record large US soybean output, brokers said. A sluggish tone in the CBOT soybean complex overnight as well as in Malaysian palm oil and European rapeseed, may be enough to slow any price gains in canola, traders said. As of 9:41 am EDT, there were 2,284 canola contracts traded. As of 9:41 EDT, no western barley contracts had changed hands. |
