ICE Canola Futures Find Some Support From Weak C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 20, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a mixed range at 9:47 EST with the nearby January and May contracts posting small gains. Weakness in the Canadian dollar and strength overnight in Malaysian palm oil futures helped to generate some of the upward price momentum, market watchers said.
Light exporter pricing of some old business helped to provide some support as did the buying back of previously sold positions by a variety of market participants, brokers said. Some evening up of positions ahead of the weekend was evident. The upside in canola was being limited by the declines in e-CBOT soybean futures overnight and the lower calls for CBOT soybean and soyoil values with the start of the North American day session, traders said. A pick up in elevator company hedge offers, as firm cash bids in western Canada triggered some farmer deliveries, also restricted the upside in canola, brokers said. Sluggish demand from the export and domestic sectors contributed to the bearish sentiment in canola and further limited the upside price potential. The lingering uncertainty surrounding Canada’s ability to export canola to China given blackleg plant disease restrictions remained a factor in the market, brokers said. Uncertainty about the crush pace this year due to the problem with salmonella in canola meal that has halted Canadian canola meal shipments into the US also was helping to undermine values, traders said. Losses in global crude oil futures and some early weakness in the North American equity sector were also viewed as bearish for canola prices. As of 9:47 am EST, there were 1,340 canola contracts traded. As of 9:47 am EST, no western barley contracts had been traded. |
