ICE Canola Corrects Slightly Lower
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| By Phil Franz-Warkentin, Resource News International |
| June 16, 2010 |
| Winnipeg – ICE Canada canola futures traded to both sides of unchanged in overnight activity, but were mostly lower early Wednesday morning as the market finally started to see a corrective pullback on its recent rally.
The nearby July contract moved as high as C$420 per metric ton in overnight activity before the buying eased up and the technical selling pressure came forward to weigh on values. However, the wet weather concerns behind the recent rally remained a supportive price influence, as traders continue to try and get an idea of just how many canola acres will be left unseeded this year. Farmers also remain reluctant sellers given the uncertain crop conditions many of them are facing this year. A slightly weaker tone in the Canadian dollar early in the day also provided some underlying support for canola, according to traders. Calls for a higher start in the CBOT soy complex, along with overnight gains in Malaysian palm oil futures were also helping limit the declines in canola. About 2,400 canola contracts had traded as of 8:33 CDT. The July/November spread was a feature of the activity as participants roll out of the nearby contract. Western barley futures were untraded and unchanged early in the day. Prices in Canadian dollars per metric ton at 8:33 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 414.10 | dn 2.10 | |
| Nov | 417.50 | dn 0.10 | |
| Jan | 419.20 | dn 1.30 | |
| Western Barley | |||
| Jul | 147.50 | unch | |
| Oct | 150.00 | unch | |
