ICE Canola Mostly Higher On Follow-Through Buying
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| By Phil Franz-Warkentin, Resource News International |
| February 2, 2010 |
| Winnipeg – ICE Canada canola futures were mixed Tuesday morning, with a stronger tone in the most actively traded nearby contracts. Follow-through on Monday’s firmer close provided some support, according to traders.
Calls for a higher start to the CBOT soy complex, together with overnight gains in Malaysian palm oil and European rapeseed futures, were also expected to underpin canola values. A lack of farmer selling, coupled with routine export demand should also keep canola prices supported, according to traders. However, aside from routine pricing of old business, traders said there wasn’t much new business going on currently. With ample supplies overhanging the market, traders cautioned that any upside may be limited. The Canadian dollar was slightly firmer early in the day, putting some pressure on canola values. About 3,000 canola contracts had traded as of 8:42 CST. The March/May spread accounted for the bulk of the activity and was expected to remain a dominant feature during the North American session as participants roll their positions out of the nearby month. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:42 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 377.20 | up 1.00 | |
| May | 383.50 | up 1.00 | |
| Jul | 385.60 | dn 2.10 | |
| Western Barley | |||
| Mar | 147.00 | unch | |
| May | 150.00 | unch | |
