ICE Canola Futures Down Following Outside Oilseeds
| 2 min read
| By Dwayne Klassen, Resource News International |
| October 15, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels as of 9:35 EDT. Declines in canola reflected the sell-off experienced by the outside oilseed markets overnight, industry watchers said. The Canadian dollar’s continued move towards parity with the US currency was also an undermining price influence.
The e-CBOT soybean complex posted large losses overnight with European rapeseed and Malaysian palm oil futures also experiencing declines, brokers said. The declines in canola also came in anticipation of further losses being posted by CBOT soybean and soyoil futures with the start of the North American day session, traders said. Some of the selling in canola was also coming from weather outlooks calling for warmer and drier conditions for the Canadian prairies, which should allow producers, particularly in Saskatchewan, time to complete harvest operations. Bearish chart signals also continue to hang over canola and were expected to help keep values on the defensive, brokers said. The Canadian dollar overnight made a push to the 98.00 US cent level before running into technical resistance and pushing back to the 97.26 US cent area in early Thursday morning activity. However, even at 97.00 US cents, the Canadian dollar was still strong enough to scare off potential canola customers, traders said. As of 9:35 am EDT, there were 1,528 canola contracts traded. As of 9:47 am EDT, no western barley contracts had been traded. ICE Futures Canada late Wednesday announced that effective immediately, the December 2009 western barley contract had been de-listed. The October 2009 and December 2009 contracts were the last remaining contracts under the old Rule 18 barley, and neither had outstanding open interest. Wednesday was the last trading day for October 2009 futures, and the Exchange has also de-listed the December 2009 barley contract (futures and options). ICE Futures Canada had already launched a revised Western Barley futures contract and all contracts, including November 2009, January 2010, and subsequent months, remain listed. |
