ICE Canola Futures Ease, Strong C$ Bearish
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 10, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 9:45 EST. Some of the price weakness was associated with the strength in the Canadian dollar early Thursday, market watchers said.
Although there were no major surprises in this morning’s supply/demand update from the USDA, the bias had a slightly bearish pull for CBOT soybeans, corn and wheat, brokers said. Declines overnight in Malaysian palm oil helped to stimulate some of the downward price action seen in canola. A drop off in demand from the export sector helped to initiate some selling, traders said. Large supplies of canola in western Canada and bearish technical signals were also seen as undermining price influences. Support in the canola market was coming from the absence of producer offerings. Steady underlying domestic demand for canola and the strength displayed by global crude oil values, helped to generate some strength. Higher calls for CBOT soybean futures with the start of the North American day session, also helped to provide a firm floor for canola. As of 9:45 am EST, there were 3,234 canola contracts traded. As of 9:45 am EST, no western barley contracts had been traded. General firmness in the cash market was seen providing western barley futures with some minor support, brokers said. The absence of producer offerings amid the extreme cold temperatures which have hit western Canada helped to generate some underlying support. |
