ICE Canola Higher, But Could Turn Choppy
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| September 8, 2009 |
| Winnipeg – ICE Canada canola futures were mostly higher in overnight activity, but could be due for some choppiness given the strong Canadian dollar and the increasing harvest pressure, said traders.
Overnight gains in Malaysian palm oil and European rapeseed futures, along with firmer calls for the CBOT soy complex, were providing some underlying support for canola, according to market participants. Forecasts calling for a potential frost in central and northern Alberta later this week were also accounting for some of the buying interest. However, crop conditions remain favourable across most of North America, and the increasing harvest pressure should temper the upside in canola, said traders. The Canadian dollar was sharply stronger Tuesday morning, which was bearish for canola and should cause the market to lag any gains in soybeans, said traders. Statistics Canada releases its estimates for grain and oilseed stocks, as of July 31, on Wednesday and some positioning ahead of the report was expected. From a technical standpoint, the November canola contract was trading slightly above the key chart point of C$400 per metric ton early in the day. About 410 canola contracts had traded as of 8:44 CDT. Western barley futures were unchanged and untraded in overnight activity. Prices in Canadian dollars per metric ton at 8:44 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 401.00 | up 2.00 | |
| Jan | 406.00 | up 2.50 | |
| Mar | 405.60 | dn 0.30 | |
| Western Barley | |||
| Oct | 107.30 | unch | |
| Nov | 146.30 | unch | |
