ICE Canola Up On Follow-Through Buying, Outside Markets
| 1 min read
| By Phil Franz-Warkentin, Commodity News Service Canada |
| Dec. 1, 2010 |
| Winnipeg – ICE Canada canola futures were stronger Wednesday morning, seeing some follow-through buying on Tuesday’s firmer close. Gains in the outside oilseed and equity markets were providing some of the incentive to keep canola pointed higher as well, said traders.
The concerns about the debt situation in Europe that had weighed on the financial markets in recent days were subsiding on Wednesday, and the renewed appetite for risk in the financial markets was helping take the agricultural commodities higher as well, said analysts. CBOT soybeans were being called sharply stronger to start the North American session, while Malaysian palm oil and European rapeseed futures were also up in overnight trade. The dryness concerns for the South American soybean crops also remained a supportive influence for canola. Bullish technical signals added to the gains in canola, as prices moved above some nearby resistance levels, said traders. Market participants were expected to be showing some caution ahead of the Statistics Canada production report on Friday, which could limit the upside. Most traders are anticipating upward revisions to canola yields. However, actual production may not increase all that much if StatsCan adjusts their acreage numbers lower, according to some analysts. Early strength in the Canadian dollar also tempered the advances in canola. About 1,800 canola contracts had traded as of 8:32 CST. Western barley futures were untraded and unchanged Wednesday morning. Prices in Canadian dollars per metric ton at 8:32 CST: |
| Price | Change | ||
| Canola | |||
| Jan | 544.00 | up 7.60 | |
| Mar | 550.50 | up 7.40 | |
| Nov | 502.70 | up 4.40 | |
| Western Barley | |||
| Dec | 187.00 | unch | |
| Mar | 187.00 | unch | |
