ICE Canola Futures Ease As Outside Oilseeds Decline
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 14, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to weaker price levels at 9:35 EDT. The lack of follow-through demand that was evident in Monday’s trade and declines in the outside oilseed markets overnight, accounted for the losses seen in canola, market watchers said.
Losses were posted overnight in e-CBOT soybean futures, as well as in Malaysian palm oil and European rapeseed prices, brokers said. Anticipated declines in CBOT soybean futures with the start of the North American day session, further encouraged the weakness in canola, traders said. Continued firmness in the Canadian dollar was adding to the bearish sentiment in canola, with the strong currency scaring off fresh export demand and causing crush margins for domestic processors to deteriorate. Analysts said some bearish fallout from the larger than expected ending stocks forecast from Statistics Canada last week also continues to weigh on canola futures. News that ABARE has increased its estimate for this year’s Australian canola crop to 2.23 million metric tons, also had bearish price implications for canola. With the higher production, Australia’s canola exports were also seen increasing. The losses in canola were tempered by outlooks calling for a significant frost later this week in Alberta and Saskatchewan, brokers said. The late development of this year’s canola crop has left it more vulnerable than normal to frost damage. As of 9:35 EDT, there were 664 canola contracts traded. As of 9:35 EDT, no western barley contracts had been traded. |
