ICE Canola Futures Climb On Weather Worries
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at 9:33 EDT. Ongoing concerns about the delays in harvesting the canola crop in western Canada and the prospect of significant frost damage later this week, helped to prop up values, market watchers said.
Small gains overnight in e-CBOT soybeans and European rapeseed values helped to stimulate some of the upward price action seen in canola, brokers said. Steady to slightly firmer calls for CBOT soybean values with the start of the North American day session also provided some support. A drop off in the level of farmer deliveries into the cash pipeline added to the friendly price tone as did the pricing of old export business. The strength in canola was also coming from the downward pull-back in the value of the Canadian dollar, traders said. The upside in canola was being limited by the large old crop supply situation in western Canada and the need of the market to absorb those supplies, brokers said. Malaysian palm oil futures lost ground overnight which was viewed as an undermining price influence. There were also ideas that weakness in the broader markets this morning (equities, energy, etc.) might encourage some sympathy selling interest in ag commodities generally and at least limit canola gains, analysts said. As of 9:33 EDT, there were 2,045 canola contracts traded. As of 9:33 EDT, no western barley contracts had been traded. |
