ICE Canola Futures Ease On Poor Demand, Strong C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 23, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 9:38 EST. The downward price action in canola reflected end of year liquidation orders, as well as a drop off in demand, market watchers said. Strength in the Canadian dollar was also viewed as an undermining price influence.
Activity was described as choppy with some participants starting to take to the sidelines to wait out the Christmas and New Year’s holidays. ICE Futures Canada will close at 1:00 EST on Thursday, December 24. The Exchange will be closed on Friday, December 25 and again on Monday, December 28. Losses overnight in Malaysian palm oil and European rapeseed futures helped to spark some light selling interest in canola, brokers said. The favourable weather conditions for the development of the soybean crops in Brazil and Argentina contributed to the price weakness. The absence of fresh export demand continues to weigh on canola with domestic crusher demand also significantly reduced. Bearish chart signals were helping to put canola futures on the defensive, traders said. Some underlying support in canola came from the gains seen overnight in e-CBOT soybean values and the steady to slightly higher calls for CBOT soybean futures with the start of the North American day session, brokers said. As of 9:38 am EST, there were 1,533 canola contracts traded. As of 9:38 am EST, no western barley contracts had been traded. Activity in barley was expected to be a light two way affair between commercials, brokers said. |
