ICE Canola Down On Follow-Through Selling
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| By Phil Franz-Warkentin, Resource News International |
| Sept. 9, 2010 |
| Winnipeg – ICE Canada canola futures were weaker Thursday morning, seeing some follow-through selling on Wednesday’s lower close, as the larger than expected canola stocks reported by Statistics Canada yesterday remained a bearish influence.
Canadian canola stocks as of July 31 were nearly a million tons larger than most market participants had anticipated, and the large carry-over supplies were seen easing some of the worries about the current crop, according to traders. However, ongoing production uncertainty was limiting the downside, as harvest delays and the risk of frost continue to underpin the market. Calls for a weaker start in the CBOT soy complex, along with overnight declines in Malaysian palm oil futures, were also putting some downward pressure on canola, according to traders. In addition, the Canadian dollar was showing some continued strength Thursday morning after rallying sharply on Wednesday. The firmer currency cuts into domestic crush margins and makes canola less attractive to export customers. About 2,800 canola contracts had traded as of 8:35 CDT. Western barley futures were untraded and unchanged Thursday morning. Prices in Canadian dollars per metric ton at 8:35 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 457.30 | dn 3.70 | |
| Jan | 463.50 | dn 2.30 | |
| Mar | 469.60 | unch | |
| Western Barley | |||
| Oct | 175.00 | unch | |
| Dec | 180.00 | unch | |
