ICE Canola Down On Profit-Taking
| 1 min read
By Phil Franz-Warkentin, Resource News International |
January 7, 2010 |
Winnipeg – ICE Canada canola futures were lower Thursday morning, as the profit-taking hitting many international commodity and equity markets was spilling into canola, according to analysts.
Some of the selling pressure in commodities was triggered by an interest rate increase in China, according to a market analyst. He said the concern was that the tightening Chinese monetary policy would temper the country’s demand for commodities. The looming South American soybean crop also weighed on canola values, as crop conditions remain favourable for soybeans in both Brazil and Argentina, according to traders. The Canadian dollar continued to strengthen relative to its US counterpart on Thursday morning, moving above 97 US cents. The firm currency cuts into crush margins and makes Canadian canola more expensive for export customers. Firm technical signals limited the downside in canola, keeping prices from moving below nearby chart support levels, according to an analyst. Exporter pricing was also said to be providing support, as the overall demand for oilseeds remains strong, said traders. About 1,060 canola contracts had traded as of 8:50 CST. Western barley futures were holding steady in overnight activity, with only one contract actually traded. Prices in Canadian dollars per metric ton at 8:50 CST: |
Price | Change | ||
Canola | |||
Mar | 409.10 | dn 4.30 | |
May | 415.50 | dn 4.70 | |
Jul | 421.00 | dn 4.30 | |
Western Barley | |||
Mar | 154.00 | unch | |
May | 155.50 | unch |