ICE Canola Futures Ease On Farmer Movement, Chart Resistance
| 2 min read
| By Dwayne Klassen, Resource News International |
| April 15, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels as of 9:51 EDT. Weakness in canola reflected increased farmer deliveries of the commodity in the cash pipeline in western Canada and the running into key technical resistance levels, market watchers said.
The steady farmer deliveries were reflective of higher cash bids as elevator companies try to cover requirements amid spring road restrictions, brokers said. Overhead technical resistance in the May contract at C$437.00 per metric ton was also contributing to some of the weakness in canola. Firmness in the Canadian dollar early Wednesday also helped to put some downward pressure on canola, brokers said. Support under canola came from the advances posted in the outside oilseed markets overnight, with gains posted in e-CBOT soybeans, Malaysian palm oil and European rapeseed values, traders said. Higher calls for CBOT soybean and soyoil values with the start of the North American day session also helped to limit the downside in canola. Also providing a firm floor under canola was talk of fresh export business with China and steady domestic processor demand amid extremely profitable crush margins, traders said. Small gains in global crude oil values and some small advances in the North American equity sector were also helping to provide some underlying support in canola. Market participants were expecting commodity funds activity to surface in canola during the session. As of 9:51 am EDT, there were 1,929 canola contracts traded. At 9:51 am EDT, no western barley contracts had traded with prices unchanged. Prices in Canadian dollars per metric ton at 9:51 am EDT: Price Change W.Barley May $137.00 unch |
