ICE Canola Futures Ease As C$ Strengthens
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 21, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 9:37 EST. Much of the downward price action seen in canola was being associated with the strong Canadian dollar, which discourages importers from buying the commodity, market watchers said.
Contributing to the declines in canola were the losses posted overnight in Malaysian palm oil futures. The favourable South American crop conditions were also stimulating some additional selling interest. Activity was expected to be on the choppy side ahead of the Christmas and Boxing Day holidays. ICE Futures Canada will close at noon central time on Thursday, December 24. The Exchange will be closed on Friday, December 25 as well as on Monday, December 28. The absence of fresh export demand helped to weaken canola values with some light hedging from elevator companies adding to the bearish price sentiment, brokers said. Some underlying support in canola stemmed from the gains posted by eCBOT soybean futures overnight and the higher calls for CBOT soybean and soyoil futures with the start of the North American day session, traders said. Light domestic crusher demand was expected at the lows, analysts said. As of 9:37 am EST, there were 2,120 canola contracts traded. As of 9:37 am EST, no western barley contracts had been traded. The mixed calls for CBOT corn futures with the start of the North American day session were seen keeping commercial accounts on the sidelines, brokers said. |
