ICE Canola Futures Ease On Canola Export Restrictions
| 2 min read
| By Dwayne Klassen, Resource News International |
| November 12, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at 9:45 EST. Much of the downward price movement reflected news that China will still go ahead with plans to implement quarantine measures on canola imports after November 15.
The measures address China’s concern with the possible importation of blackleg, a fungal disease common in canola Canola from all countries will have to be tested at the exporting countries, and those with blackleg can be imported into China only through certain ports. Officially, China allows canola imports only from Canada and Australia, with Canada being its biggest exporter. China’s decision to implement quarantine measures on imported canola confirms that no extension will be permitted to the November 15 date originally proposed. Canadian officials had asked for this extension while risk mitigation measures are implemented. Adding to the bearish price tone in canola were the losses seen overnight in e-CBOT soybean and the lower calls for CBOT soybean and soyoil futures with the start of the North American day session, brokers said. The advanced harvest operations in western Canada were also being viewed as an undermining price influence in canola, traders said. A drop off in domestic crusher demand will contribute to the price weakness, brokers said. Some of the downward price movement in canola will be tempered by slow farmer deliveries into the cash market and by the pull-back in the value of the Canadian dollar early Thursday. Strength in the CBOT soybean and soyoil markets during the North American session on Wednesday when the ICE Canada trading platform was closed for Remembrance Day, also may offer some underlying support. As of 9:45 am EST, there were 2,511 canola contracts traded. As of 9:45 am EST, no western barley contracts had been traded. |
