ICE Canola Up On Weather Woes, Spec Buying
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| By Phil Franz-Warkentin, Resource News International |
| Sept. 20, 2010 |
| Winnipeg – ICE Canada canola futures were stronger Monday morning, seeing some follow-through from last week’s gains as weather issues remain a concern in western Canada. Technical buying added to the strength in canola, with prices hitting fresh contract highs in overnight activity.
Cool, wet weather continues to cause concerns about harvest delays, quality downgrades, and yield reductions in western Canada, according to traders who said weather issues in parts of the US and China were also providing some spill-over support to canola. Calls for a firmer start to the North American session for CBOT soybeans, along with overnight advances in Malaysian palm oil, were helping further underpin canola. While the move to fresh contract highs encouraged some additional speculative buying in canola, there was also some sentiment that the market was getting overdone to the upside leaving canola open to a correction lower. Early strength in the Canadian dollar also served to temper the advances in canola, according to traders. Forecasts calling for improved harvest conditions in western Canada later this week were another limiting factor in the market. About 2,170 canola contracts had traded as of 8:30 CDT. Western barley futures were untraded and unchanged Monday morning. Prices in Canadian dollars per metric ton at 8:30 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 480.50 | up 4.30 | |
| Jan | 484.70 | up 4.60 | |
| Mar | 490.50 | up 7.30 | |
| Western Barley | |||
| Oct | 170.00 | unch | |
| Dec | 182.00 | unch | |
