ICE Canola Lower with Chinese Moves

Oct. 19, 2010 at 12:00 am CDT | 1 min read

By Brent Harder, Resource News International

October 19, 2010

Winnipeg – October 19 – Canola contracts on the ICE Canada platform were lower Tuesday, after China raised their reserve and interest rates, which has been taking all commodity markets lower, including canola, analyst said.

European rapeseed closed lower Tuesday, while CBOT soybeans were lower, which contributed to canola’s decline, market watchers said.

Speculative liquidation was a common theme, as producer selling began to slow following with the harvest beginning to wrap up across the Canadian prairies.

The hike of Chinese interest rates weakened the Canadian dollar by nearly two cents, which helped to limit canola’s losses.

Malaysian palm oil saw a slight gain, which also limited the losses in canola.

At 08:40 CDT, there had been about 1,600 canola contracts traded.

Western barley contracts were unchanged and untraded in early trading.

Prices in Canadian dollars per metric ton at 8:50 CDT: