ICE Canola Futures Drop On Outside Oilseeds, Harvest
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 24, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels as of 9:45 EDT. Weakness in the overseas oilseed markets overnight helped to put some downward pressure on canola as did the favourable weather for harvest operations in western Canada, market watchers said.
The e-CBOT soybean complex was lower overnight with European rapeseed and Malaysian palm oil values also settling with declines. Some of the losses in canola also came in anticipation of CBOT soybean and soyoil futures posting further declines with the start of the North American day session, brokers said. Ideas that the canola crop could be as much as 1 million metric tons larger than the last forecast from Statistics Canada of 9.5 million, were helping to keep canola on the defensive, traders said. Bearish technical signals and favourable weather for harvest operations through the weekend were contributing to the weak price tone in canola, they said. Market participants were expected to keep an eye on the G20 Economic Summit that will take place Thursday in Pittsburgh, with speculators likely to adjust positions in all commodity markets if any surprises come out of the meeting, brokers said. A drop off in fresh export demand was also seen as an undermining price influence in canola. Some light underlying support in canola was seen stemming from steady domestic crusher demand and the pricing of old export business to Japan and Mexico, brokers said. As of 9:45 am EDT, there were only 752 canola contracts traded. As of 9:45 EDT, no western barley contracts had changed hands |
