ICE Canola Corrects Slightly Lower
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| By Phil Franz-Warkentin, Resource News International |
| August 16, 2010 |
| Winnipeg – ICE Canada canola futures were weaker Monday morning, seeing a corrective setback on Friday’s late gains. Calls for a slightly weaker start to the North American session for CBOT soybeans were also weighing on canola, although traders said activity could easily turn mixed as participants start to square up their positions ahead of the August 20 Statistics Canada crop production report.
Increased commercial demand helped canola rally to end the past week, but traders said follow-through buying was lacking on Monday. Profit-taking on those advances was also behind some of the weakness on Monday. Overnight losses in Malaysian palm oil futures were also slightly bearish for canola. However, European rapeseed futures were narrowly mixed, while Chinese soybean contracts managed to move higher. The Canadian dollar was weaker Monday morning, providing some underlying support to canola values, according to traders. Harvest delays in parts of western Canada, following weekend rains, were also underpinning the canola market. However, weather conditions are forecast to be reasonably favourable over the next week, which should allow for the harvest to advance. About 800 canola contracts had traded as of 8:40 CDT. Western barley futures were untraded and unchanged. Prices in Canadian dollars per metric ton at 8:40 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 460.20 | dn 2.20 | |
| Jan | 465.00 | dn 0.40 | |
| Mar | 465.70 | unch | |
| Western Barley | |||
| Oct | 168.00 | unch | |
| Dec | 168.00 | unch | |
