ICE Canola Higher, But Cautious
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| By Phil Franz-Warkentin, Resource News International |
| April 9, 2010 |
| Winnipeg – ICE Canada canola futures were mostly higher Friday morning, as a slightly weaker tone in the Canadian dollar provided some support. However, activity was described as thin and choppy, with mixed calls for the CBOT soy complex lending a cautious tone to the market.
The USDA released updated supply/demand tables Friday morning, and the reaction in the US market should help set the tone in canola as well. An analyst said soybeans, and in turn canola, could go either way in reaction to the USDA numbers which showed an increase in global soybean carry-out, but smaller-than- expected US ending stocks. The Canadian dollar had moved above parity with its US counterpart in overnight trade, which put some pressure on canola values. However, employment data released Friday morning failed to meet market expectations and the currency turned lower, providing some support for canola, according to traders. A winter storm system moving through Alberta could provide some much needed moisture to some of the dry areas of the province, tempering the upside in canola, according to traders. However, market participants also noted that the snow will not be enough to erase the moisture deficit, keeping some weather premium in the market. Malaysian palm oil futures were sharply higher in overnight activity, providing some underlying support for canola, according to traders. About 200 canola contracts had traded as of 8:50 CDT. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:50 CDT: |
| Price | Change | ||
| Canola | |||
| May | 381.60 | up 1.50 | |
| Jul | 387.00 | up 0.60 | |
| Nov | 391.20 | up 1.10 | |
| Western Barley | |||
| May | 154.00 | unch | |
| Jul | 145.50 | unch | |
