ICE Canola Futures Ease On Weather, Outside markets
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 17, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 9:40 EDT. Favourable weather conditions during the weekend which allowed for good seeding progress across Western Canada and development of the already planted crops, accounted for some of the bearish price sentiment, market watchers said.
Declines overnight in eCBOT soybean values and Malaysian palm oil futures contributed to the weakness seen in canola, brokers said. The lower calls for CBOT soybean and soyoil with the start of the North American day session were also adding to the bearish price atmosphere. The ongoing financial crisis in the euro-zone and instability in the outside commodity markets was also an undermining price influence, brokers said. Underlying support in canola was coming from the continued downswing in the value of the Canadian dollar and from the abse nce of significant farmer selling into the cash market. The slow down in farmer movement was linked to the fact producers were concentrating on spring fieldwork as opposed to marketings. Talk of fresh export demand under the market was also helping to keep a firm floor under canola. Steady domestic processor demand was also an underpinning price influence for canola. As of 9:46 am EDT, there were 331 canola contracts traded. As of 9:46 am EDT, no western barley contracts had been traded.
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