ICE Canola Stronger, But Range-Bound
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| By Phil Franz-Warkentin, Resource News International |
| March 3, 2010 |
| Winnipeg – ICE Canada canola futures were posting slight gains Wednesday morning, but were holding within a tight range overall.
Calls for a firmer start in the CBOT soy complex were lending some spillover support to canola, according to a trader. Overnight advances in Malaysian palm oil and European rapeseed futures, along with the strength seen in equities and crude oil, should also help underpin canola. Technical support levels were holding in overnight activity, and traders said that chart support could bring in more speculative buying. Steady commercial demand was also expected to remain supportive. The Canadian dollar was stronger once again Wednesday morning, tempering the advances in canola. However, the currency was starting to slow down in its upward move. Large global oilseed supplies and the advancing South American harvest also continue to overhang the canola market, according to traders. About 800 canola contracts had traded as of 8:46 CST. Western barley futures were untraded and unchanged in overnight activity. Traders said recent losses in barley may have been overdone, creating the potential for a corrective bounce higher. Prices in Canadian dollars per metric ton at 8:46 CST: |
| Price | Change | ||
| Canola | |||
| May | 386.60 | up 0.60 | |
| Jul | 392.60 | up 0.30 | |
| Nov | 398.50 | up 1.00 | |
| Western Barley | |||
| May | 142.00 | unch | |
| Jul | 142.00 | unch | |
