ICE Canola Futures Drop On Advancing Harvest
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 17, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels as of 9:48 EDT. Weakness was linked to the lack of frost in the US weather outlooks and the advancing harvest operations in western Canada, market watchers said.
Small losses in the e-CBOT soybean complex overnight helped to put some downward pressure on canola early with reports of good harvest progress being made adding to the bearish price sentiment, brokers said. Some of the declines seen in canola were also in anticipation of further losses being posted in CBOT soybean and soyoil futures with the start of the North American day session. A pick up in farmer selling, due in part to the advancing harvest, was also adding to the weakness in canola, brokers said. Bearish technical signals and sluggish fresh export demand were also undermining price influences. Strength in the Canadian dollar early Thursday also added to the bearish price sentiment. The weather outlooks for western Canada are calling for mostly sunny and warm to hot temperatures for another day or two. However, there is a frost warning for regions of Alberta on Monday. With the good weather market participants are expecting canola output in Canada to be at least a couple of million metric tons above the current Statistics Canada estimate of 9.5 million. Limiting the price slide in canola will be steady domestic crusher demand and the pricing of old export business, brokers said. Sentiment that canola values have reached oversold price levels also should provide some underlying support to values, they said. As of 9:48 am EDT, there were 223 canola contracts traded. As of 9:48 EDT, no western barley contracts had changed hands |
