ICE Canola Futures Ease On Harvest Pick Up Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| September 23, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 9:36 EDT. Weather outlooks calling for warmer and drier conditions across the Canadian prairies on the weekend were seen as an undermining price influence, market watchers said.
Some of the weakness seen in canola overnight reflected the declines seen in e-CBOT soybean value and the mainly lower close in Malaysian palm oil futures. The weaker calls for CBOT soybean and soyoil values with the start of Thursday’s North American day session also was viewed as bearish for canola, brokers said. Overbought price sentiment and some profit-taking after recent advances was contributing to the unfriendly price atmosphere for canola this morning, analysts said. Talk of increased farmer deliveries into the cash pipeline further weighed on canola. Brokers noted that there were crushers in southern Alberta that have eliminated their basis price in order to stimulate canola movement. Some weakness in canola was also coming from ideas that the frost last week in western Canada did not cause as much damage to yields and the quality of the crop as had been suggested, traders said. Some underlying support in canola was coming from the pull-back in the value of the Canadian dollar and from the pricing of old export business to Japan, brokers said. Steady domestic processor demand amid an improvement in crush margins, was also helping to provide a firm price floor for canola. As of 9:36 EDT, there were 594 canola contracts traded. As of 9:36 EDT, no western barley contracts had been traded. |
