ICE Canola Strengthens Following Outside Markets
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| July 15, 2009 |
| Winnipeg – ICE Canada canola futures were higher in overnight activity, as gains in the outside markets provided some support. Ongoing weather concerns in western Canada also helped underpin canola values, according to traders.
Overnight gains in Malaysian palm oil, crude oil and the equity markets were thought to be lending a firmer tone to canola. Calls for a higher start in the CBOT soy complex were also seen as supportive. While weather conditions have been improving to some extent in western Canada, there is still more than enough concern in some areas to keep prices supported, said traders. Low overnight temperatures in Alberta were seen heightening ideas that the canola crops are developing slowly and will be at a greater risk for frost in the fall. The Canadian dollar was sharply stronger Wednesday morning, up more than a cent compared to its US counterpart. The strong Canadian dollar will cut into crush margins and should limit the upside in canola, according to traders. About 625 canola contracts had traded as of 8:51 CDT, the bulk of that in the November futures month. Western barley futures were untraded in overnight activity, but could manage to find some spillover support from the gains expected in most other agricultural commodities. Prices in Canadian dollars per metric ton at 8:51 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 429.30 | up 3.80 | |
| Jan | 434.00 | up 4.10 | |
| Mar | 434.10 | unch | |
| Western Barley | |||
| Oct | 164.50 | unch | |
| Nov | 184.00 | unch | |
