ICE Canola Down As Outside Markets Weaken

By Dwayne Klassen, Resource News International

March 5, 2009

Winnipeg – Canola contracts traded on ICE Futures Canada were loer in overnight activity with values taking direction from the declines in the outside markets, industry observers said.

Losses in the e-CBOT soybean complex helped to spur some selling interest in canola overnight, brokers said. Lowr calls for CBOT soybean and soyoil values with the start of the North Amerrican day session further weighed on canola.

Losses in the North American equity and energy sectors early Thursday were also seen as undermining price influences for the oilseeds in general, traders said.

The losses in canola were offset inj part by weakness in the Canadian dollar and the ongoing tight cash supply situation in western Canada, brokers said. Steady domestic crusher demand and the pricing of some old export business was also generating a firm price floor for canola to work with.

Roughly 1,884 canola contracts had traded by 8:50 CST. Spreading was only a small feature of the overnight activity.

Western barley futures were untraded in overnight trade, but could be poised to move lower given the calls for a weaker start in CBOT corn.