ICE Canola Higher On Follow-Through Buying
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| By Phil Franz-Warkentin, Resource News International |
| July 22, 2010 |
| Winnipeg – ICE Canada canola futures were stronger Thursday morning, seeing some follow-through on Wednesday’s firmer close, with technical buying and the ongoing weather concerns in western Canada providing support.
In addition to the excessive moisture that continues to hurt the yield potential in western Canada, the drought conditions causing problems for the European rapeseed crop were also providing some underlying support to the canola market, according to traders. Calls for a higher start in the CBOT soy complex added to the firmer tone in canola, with overnight gains in Malaysian palm oil another supportive price influence. Talk of exporter pricing in the canola market also helped underpin prices, although there was no confirmation of any fresh business Thursday morning. The recent advances in canola were likely encouraging some farmer selling, which should limit the upside, according to a trader. Overbought chart signals and early strength in the Canadian dollar were also expected to temper any advances in canola, said market participants. About 790 canola contracts had traded as of 8:20 CDT. Western barley futures were untraded and unchanged. Prices in Canadian dollars per metric ton at 8:20 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 465.00 | up 4.20 | |
| Jan | 467.80 | up 4.20 | |
| Mar | 466.80 | up 5.30 | |
| Western Barley | |||
| Oct | 156.50 | unch | |
| Dec | 156.50 | unch | |
