ICE Canola Stronger On Bullish Technicals
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| By Phil Franz-Warkentin, Resource News International |
| July 8, 2010 |
| Winnipeg – ICE Canada canola futures were higher Thursday morning, seeing follow-through buying on Wednesday’s break above chart resistance.
The November canola contract moved past the key C$430 per metric ton level on Wednesday, and traders said the bullish technical move was encouraging more speculative buying interest on Thursday. Concerns about crop conditions in western Canada also continued to keep canola values well supported, as the market works to ration demand and farmers remain reluctant sellers. Overnight gains in Malaysian palm oil futures along with calls for a slightly firmer start for CBOT soybeans were also providing some underlying support for canola. However, an analyst noted that soybeans were not seeing the same follow-through strength as canola. He said generally favourable US crop conditions and positioning ahead of Friday’s USDA supply/demand report may keep that market relatively subdued, which would limit the upside in canola as well. Strength in the Canadian dollar could also weigh on canola, according to traders. About 1,450 canola contracts had traded as of 8:30 CDT. Western barley futures were untraded and unchanged. Prices in Canadian dollars per metric ton at 8:30 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 439.70 | up 5.30 | |
| Jan | 438.90 | up 5.00 | |
| Mar | 436.80 | up 5.20 | |
| Western Barley | |||
| Oct | 156.00 | unch | |
| Dec | 156.00 | unch | |
