ICE Canola Futures Up As Rain Remains In Forecast
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 24, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at 9:28 EDT. Weather outlooks calling for additional precipitation in the already wet regions of western Canada helped to fuel some of the price advances in canola, market watchers said.
The rains are expected to continue over the next few days over most of Saskatchewan and central Alberta, with the precipitation also hitting Manitoba during the weekend. Meanwhile, dry weather conditions in the canola growing regions of northern Alberta also helped contribute momentum to the upward price action, brokers said. Gains overnight in eCBOT soybean activity and strength in Malaysian palm oil further influenced the advances in canola. The higher calls for CBOT soybean and soyoil futures with the start of the North American day session also were an underpinning influence for canola, traders said. Light domestic crusher demand was seen as supportive for canola with the pricing of old export business by commercials also adding soms strength. Weakness in the Canadian dollar early Thursday was also seen as mildly supportive. The upside in canola will be limited by bearish chart signals with the November contract facing technical resistance. Steady farmer deliveries into the cash pipeline were also expected to help restrict the price gains in canola. Favourable weather for the development of the US soybean crops also were viewed as an limiting price influence. As of 9:28 am EDT, there were 294 canola contracts traded. As of 9:28 am EDT, no western barley contracts had been traded.
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