ICE Canola Futures Drop On Deliveries, Outside Losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 23, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels as of 9:50 EDT. Steady farmer deliveries of canola into the cash pipeline along with declines in the outside oilseed markets overnight sparked much of the downward price movement, market watchers said.
The e-CBOT soybean complex posted losses overnight as did European rapeseed futures and Malaysian palm oil, brokers said. Some of the selling in canola was also linked to the lower calls for CBOT soybean and soyoil values with the start of the North American day session. The advancing canola harvest in western Canada was contributing to the weak price tone with bearish technical signals adding to the downward momentum, traders said. Reports of higher than anticipated yields added to the bearish price sentiment. Production expectations for both US soybean and Canadian canola are high and rising daily, analysts said. Statistics Canada will update its 2009/10 (Aug/Jul) crop output estimates on October 2, 2009, with most participants expecting the production forecast for canola to be well above its August estimate of 9.5 million metric tons. Some market participants have placed Canada’s canola output at 10.5 million metric tons. Some underlying support in canola was seen coming from steady domestic crusher demand and from the pricing of old export business, brokers said. The pricing of a sale of canola to China was also seen as an underpinning price influence. A slight pull-back in the value of the Canadian dollar early Wednesday, was also a minor supportive factor, brokers said. As of 9:50 am EDT, there were 2,519 canola contracts traded. As of 9:50 EDT, no western barley contracts had changed hands |
