ICE Canola Contracts Ease On Optimal Weather Outlook
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midday. The optimal growing conditions for the planting and development of the canola crop in western Canada were viewed as a key undermining price influence, market watchers said.
The good weather forecast was seen helping to amplify the amount of area that will be seeded to canola this spring, brokers said. Some of the early weakness in canola was encouraged by bearish technical signals and the declines experienced by Malaysian palm oil futures overnight. The downward price push by CBOT soyoil futures contributed to the price weakness in canola, traders said. Firmness in the Canadian dollar against other foreign currencies, also added to the bearish price atmosphere. Some underlying support in canola was coming from scale down commercial pricing. The pricing by commercials was said to be covering old export business to Japan and the covering of some domestic processor requirements, brokers said. A slow down in the amount of hedges from elevator companies also provided some underlying support. The drop off in hedging was linked to the fact producers were now concentrating on field work instead of marketings, traders said. There were an estimated 2,963 canola contracts traded at 10:33 CDT. Of the contracts traded, 1,374 were spread related. There were no western barley futures traded as of 10:33 CDT. |
