ICE Canola Down Following Outside Markets
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| By Phil Franz-Warkentin, Resource News International |
| August 24, 2010 |
| Winnipeg – ICE Canada canola futures were mostly weaker Tuesday morning, as losses in outside financial and commodity markets spilled over to weigh on values, according to traders.
Calls for a weaker start in the CBOT soy complex, overnight losses in Malaysian palm oil and European rapeseed futures, along with general declines in most other global equity and commodity markets, were all putting some pressure on canola values, according to an analyst. He said technical signals were suggesting that a test of nearby support levels could be possible, but added that those support levels were likely to hold. The Canadian dollar was also sharply weaker early in the day, helping limit the declines in canola. A weaker currency helps improve crush margins and makes canola priced in Canadian dollars more attractive to export customers. The downturn in prices was also causing farmer selling to back away from the canola market, according to traders. However, with the harvest moving forward across western Canada, hedges were expected to come forward on any attempts to move higher. About 1,220 canola contracts had traded as of 8:49 CDT. Western barley futures were untraded and unchanged Tuesday morning. Prices in Canadian dollars per metric ton at 8:49 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 437.00 | dn 3.60 | |
| Jan | 441.20 | dn 3.50 | |
| Mar | 447.90 | up 1.80 | |
| Western Barley | |||
| Oct | 168.00 | unch | |
| Dec | 183.00 | unch | |
