ICE Canola Futures Ease On Outside Market Chaos
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 20, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 9:48 EDT. Declines in the outside markets because of the ongoing fears regarding the downward plunge in the euro helped to spark the downward price slide seen in canola, industry watchers said.
While the European Central Bank announced it may intervene to stop the euro fall, the market remains sceptical of the bank’s ability to satisfactory respond to the increasing doom and gloom with respect to the European economy and the ability of EU governments to reign in their debt problems, brokers said. Adding to the bearish price sentiment in canola were the favourable weather conditions for the planting and development of the crop across western Canada, brokers said. The lower calls for CBOT soybean and soyoil futures with the start of the North American day session also helped to encourage the price declines seen in canola. Underlying support in canola was coming from the continued downswing in the value of the Canadian dollar and steady demand from domestic crushers and exporters, traders said. Gains overnight in Malaysian palm oil values also generated some light underlying support for canola. As of 9:48 am EDT, there were 874 canola contracts traded. As of 9:48 am EDT, no western barley contracts had been trade |
