ICE Canola Futures Ease As Harvest Pushes Forward
| 2 min read
| By Dwayne Klassen, Resource News International |
| September 29, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly weaker price levels as of 9:44 EDT. Some of the price easing in canola came in response to the advancing harvest operations in western Canada and signs that the crop will be much larger than anticipated, market watchers said.
Frost overnight in Manitoba was seen as meaningless to the market with the harvest too far advanced and in view of trade expectations of a big western Canadian crop. Statistics Canada will release an updated production survey of the various grain and oilseed crops on Friday, October 2. Sluggish demand from domestic processors was viewed as an undermining price influence in canola, with crushers backing away from the market due to the eroding crush margins and the inability to move canola meal into the US because of problems with salmonella Chart-based speculative liquidation orders were also prompting some of the downward price movement in canola. Underlying support in canola was coming from the advances seen overnight in the e-CBOT soybean complex, Malaysian palm oil and European rapeseed futures, brokers said. The higher calls for CBOT soybean and soyoil values with the start of the North American day session was also seen as supportive for canola. Canola was also finding some support from the slow pace of farmer selling with producers concentrating on harvest operations and fall fieldwork, traders said. As of 9:44 am EDT, there were 9,723 canola contracts traded, with a good portion of that activity believed to be the rolling of positions by large index-funds, brokers said. As of 9:44 EDT, no western barley contracts had changed hands. Much of the activity in the nearby October barley contract will be liquidation trade given that the contract will soon be delisted. |
