ICE Canola Slightly Stronger
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| August 20, 2009 |
| Winnipeg – ICE Canada canola futures were holding onto small gains in overnight activity, supported by advances in the outside oilseed markets as participants square their positions ahead of Friday’s Statistics Canada production report.
Malaysian palm oil and European rapeseed contracts were higher in overnight trade, lending some support to canola. Calls for a firmer start in the CBOT soy complex, along with gains in crude oil, were also underpinning the market, according to traders. Talk of increased export demand was also supportive for canola, although firming basis levels in the country to meet that demand may lead to increased farmer deliveries, said an analyst. A stronger tone in the Canadian dollar should also limit the upside in canola, according to traders. Statistics Canada will release its first production estimates of the crop year on Friday. Average trade estimates for the canola crop currently range from 9.5 million to 10.0 million tons, which would be well below the 12.6 million tons grown in 2008/09 (Aug/Jul). About 960 canola contracts had traded as of 8:47 CDT, the bulk of that in the November futures month. Western barley futures were untraded and unchanged in overnight activity, but could be headed higher given the firmer calls for CBOT corn. Prices in Canadian dollars per metric ton at 8:47 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 422.70 | up 0.30 | |
| Jan | 429.00 | up 2.40 | |
| Mar | 429.60 | unch | |
| Western Barley | |||
| Oct | 134.50 | unch | |
| Nov | 159.10 | unch | |
