ICE Canola Futures Climb on Weather Uncertainty

Wet weather conditions has caused seeding delays as well as flood crop damage, meaning the overall harvested acreage for 2010 will be smaller than originally expected. Additional strength in canola came from the slow pace of farmer selling into the cash pipeline, brokers said. The lack of deliveries by producers reflected the uncertainty surrounding canola plantings.

"I think that’s the main reason why this market is firmer today, is because of the lack of producer selling, traders are still getting a better handle on the unseeded acreage," a trader said.

Light domestic crusher demand and the pricing of old export business to Japan also helped to provide a firm floor for canola futures, brokers said. The advances in canola were limited by the excellent weather conditions for the development of the US soybean crop, brokers said. Weakness in CBOT soybean and soyoil values were also restricting the price advances seen in canola.

The firmness of the Canadian dollar against other foreign currencies also limited some of the price gains seen in canola.

There were an estimated 10,121 canola contracts traded at 12:00 pm EDT. There was no western barley futures traded as of 12:00 pm EDT.

Prices in Canadian dollars per metric ton at 12:00 EDT: