ICE Canola Futures Rise On Production Concerns
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 22, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at 9:36 EDT. Ongoing concerns about canola production in western Canada due to the continued wet growing conditions helped to encourage the price strength, market watchers said.
With heavy rains continuing to cause problems in the southern growing areas of Alberta, much of Saskatchewan and a number of areas in Manitoba, canola values are steadily working their way upwards in an effort to ration off demand, brokers said. Some position evening ahead of Statistics Canada’s acreage survey scheduled to be released early Wednesday morning was also evident. The higher calls for CBOT soybean futures with the start of the North American day session were also helping to influence some of the strength seen in canola, traders said. The upside in canola, however, was being restricted by overhead chart resistance and continued firmness in the Canadian dollar. The lack of fresh export business and declines overnight in Malaysian palm oil futures were also helping to slow the price advances, brokers said. Declining crush margins were another bearish price influence, keeping domestic processors on the sidelines. Talk of increased hedge selling by grain companies was also seen as an undermining price influence. As of 9:36 am EDT, there were 721 canola contracts traded. As of 9:36 am EDT, no western barley contracts had been traded. |
