ICE Canola Futures Gain As Weather Concerns Remain
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at 9:37 EDT. Strength in the overseas vegetable oil markets helped to prop up canola futures as did ongoing concerns about the adverse weather and its impact on the development and the harvest of the canola crop in western Canada, market watchers said.
Malaysian palm oil futures, European rapeseed values and the e-CBOT soybean complex all posted advances in overnight activity, helping to generate some of the support seen in canola, brokers said. The higher calls for CBOT soybean futures with the start of the North American day session also influenced some of the upward price action seen in canola. Strength in the equity sector, energy and base metal markets was also provided a firm base for canola values, brokers said. Weather issues on the Canadian prairies remain unsettling and are also providing canola futures with some good support, traders said. Cool temperatures and the strong possibility of frost damage this week was helping to generate support. A killing frost has been forecast across much of Alberta and Saskatchewan for Friday morning, analysts said. Light domestic crusher demand and some scale down pricing of old export business was seen adding to the friendly price tone. The upside in canola was being limited by the continued strength of the Canadian dollar which was scaring off fresh export business, brokers said. Technical resistance was also seen keeping the gains in canola in check. As of 9:37 EDT, there were 200 canola contracts traded. As of 9:37 EDT, no western barley contracts had been traded. |
