ICE Canola Futures Ease On Harvest Activity
| 2 min read
| By Dwayne Klassen, Resource News International |
| September 25, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly weaker price levels as of 9:42 EDT. Canola has bounced to both sides of the plus/minus line overnight with much of the early selling linked to the favourable weather for harvest operations in western Canada and continued reports of better than expected yield potential, market watchers said.
Adding to the bearish sentiment in canola were the losses in global crude oil and overseas stock markets. Small declines in the e-CBOT soybean complex overnight and losses in European rapeseed futures also was exerting some price weakness in canola, brokers said. The lower calls for CBOT soybean and soyoil futures with the start of the North American day session was also keeping some canola contracts on the defensive, brokers said. Some minor support in canola was coming from technically-based buying of previously sold positions ahead of the weekend and to ongoing talk of fresh export demand, traders said. They indicated that China was thought to have purchased another cargo of canola during Thursday’s session and may be in the market for additional quantities. Helping to generate some underlying support for canola was the weakness in the Canadian dollar Friday and steady domestic crusher demand. Also contributing to the firmness price floor under canola was talk of frost in the weather outlook for early next week in Alberta and northern Saskatchewan. Traders acknowledge the crop is generally passed the point of frost damage, but felt it was a "psychologically" supportive influence. Some frost was also reported overnight in areas of Alberta. Market participants were also expected to turn t6heir attention to the October 2 crop production update from Statistics Canada. As of 9:42 am EDT, there were 1,533 canola contracts traded. As of 9:42 EDT, no western barley contracts had changed hands. |
