ICE Canola Futures Drop On Lower CBOT Soy Values
| 2 min read
| By Dwayne Klassen, Resource News International |
| April 20, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels as of 9:54 EDT. Declines in the e-CBOT soybean complex overnight and ideas CBOT soybean futures would be on the defensive with the start of the North American day session pushed canola prices down, market watchers said.
E-CBOT soybean values lost as much as 22 cents overnight and the opening calls for CBOT soybeans with the start of the North American trading day were for double digit declines. Adding to the downward price pressure in canola were the losses posted by global crude oil values overnight and early Monday morning. The North American equity sector was also on the defensive early adding to the bearish sentiment in canola, traders said. Adding to the declines were losses overnight in Matif rapeseed futures. Market participants will also be keeping a close eye on the planting prospects in western Canada and the US. Statistics Canada will release its first look at what Canadian producers are planning on seeding this spring in a report scheduled for release on April 24. The losses in canola were being offset in part by steady domestic crusher demand amid very profitable crush margins and routine exporter pricing of old business. Weakness in the Canadian dollar was seen as an underpinning price influence with gains overnight in Malaysian palm oil also supportive, brokers said. On the charts, the intermediate outlook remains up, but values have run into some near term overhead technical resistance, traders said. As of 9:54 am EDT, there were 1,204 canola contracts traded. At 9:54 am EDT, no western barley contracts had traded with prices unchanged. Prices in Canadian dollars per metric ton at 9:54 am EDT: Price Change . W. Barley Jul $139.90 unch |
