ICE Canola Higher with Chinese Announcement
By Brent Harder
| 1 min read
| By Brent Harder, Commodity News Service Canada |
| December 13, 2010 |
| Winnipeg – December 13 – ICE Canola contracts on the ICE Canada platform were higher at 08:30 CST Monday, as the market reacted to an announcement from China that they will not raise interest rates in an effort to slowdown their economy, analysts said. There had been concerns if rates were raised, export business to the country would slow.
The soy complex in Chicago was higher in overnight trade, while Malaysian palm oil and European rapeseed excelled to new contract highs, helping to propel canola. Dry weather in South America is continuing to affect the soy crop in Brazil and Argentina which helped to underpin the market, brokers said. The area received light precipitation over the weekend, but more is needed to improve the crop outlook. Market watchers said domestic crusher demand remains strong, which has provided a firm base for canola values. Gains were limited by the Canadian dollar, which was stronger in early trade. Many experts feel Canada’s currency will gain strength throughout the day with most commodities trading higher. Brokers said activity in canola may decline over the next couple weeks, with the holiday season on the way. At 08:30 CST, there had been about 3,700 canola contracts traded. Western barley futures were unchanged and untraded early Monday. Prices in Canadian dollars per metric ton at 08:30 CST: |
| Price | Change | ||
| Canola | |||
| Jan | 570.30 | up 4.90 | |
| Mar | 578.00 | up 4.70 | |
| Nov | 515.50 | up 1.20 | |
| Western Barley | |||
| Mar | 194.00 | unchanged | |
| May | 194.00 | unchanged | |
