ICE Canada Canola Mostly Lower Following Soybeans
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| By Phil Franz-Warkentin, Resource News International |
| November 4, 2009 |
| Winnipeg – Canola futures traded on ICE Futures Canada were mostly lower at 11:05 CST Wednesday, taking some direction from the downturn in CBOT soybeans. Ongoing concerns about future sales to China added to the weaker tone in the market. Harvest pressure was also a factor, as producers were finally making some headway on the last of the canola harvest this week.
Canola had moved higher early in the day, with some of the strength thought to be tied to exporter pricing. However, canola quickly turned lower, following CBOT soybeans. A trader said the lack of any sizeable demand in canola was likely a sign that the export pricing taking place was covering routine business, rather than anything new. The trader added that the continuing uncertainty about future sales to China would keep canola values under pressure until that situation is resolved. Weather conditions across western Canada have finally allowed producers to make some headway on the last of this year’s harvest. The trader noted that farmers had started to combine canola on Sunday, and the favourable weather forecasts should allow that harvest progress to continue through the week. The Canadian dollar was stronger at midday Wednesday, which added to the weaker tone in canola, according to sources. A slightly firmer tone in CBOT soyoil provided some underlying support for canola. About 4,500 canola contracts had traded by 11:05 CST, with inter-month spreading a feature as participants roll out of the nearby July contract. Western barley futures were steady to higher at midsession with 105 contracts traded. Prices in Canadian dollars per metric ton at 11:05 CST: |
| Price | Change | ||
| Canola | |||
| Jan | 402.30 | dn 1.50 | |
| Mar | 408.50 | dn 1.60 | |
| May | 413.80 | up 0.50 | |
| Western Barley | |||
| Mar | 158.00 | up 1.00 | |
| Mar | 159.00 | unch | |
