ICE Canola Strengthens, But Could Turn Mixed
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| By Phil Franz-Warkentin, Resource News International |
| June 11, 2010 |
| Winnipeg – ICE Canada canola futures were stronger Friday morning, once again finding some support from the ongoing excessive moisture concerns in western Canada and the ideas that large areas will be left unseeded. However, traders said the activity was somewhat cautious, given the potential for profit-taking ahead of the weekend.
With time running out on getting a crop in the ground in the wettest areas of the Canadian Prairies, estimates on just how many acres will remain unplanted are highly variable. Regardless of how many acres are lost, production is generally expected to come in below earlier expectations, which is supportive for prices. Technical signals are also pointing higher for canola following the recent rally, although traders added that the market could also be due for a profit-taking correction. That uncertainty ahead of the weekend could lead to some choppiness in canola, traders added. Calls for a slightly lower start in the CBOT soy complex and overnight declines in Malaysian palm oil futures may also limit any upside potential in canola. The Canadian dollar was slightly weaker Friday morning, but was doing little to support canola as the currency had strengthened sharply on Thursday. The Canadian Wheat Board, or CWB, will be holding an industry briefing later Friday morning on crop conditions both in Canada and internationally. The CWB report could provide some direction for the canola market, as it should provide a clearer picture of the western Canadian weather situation. About 2,300 canola contracts had traded as of 8:35 CDT. Western barley was untraded and unchanged Friday morning. Prices in Canadian dollars per metric ton at 8:35 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 395.00 | up 1.00 | |
| Nov | 399.60 | up 1.60 | |
| Jan | 404.50 | up 1.30 | |
| Western Barley | |||
| Jul | 147.50 | unch | |
| Oct | 145.00 | unch | |
