ICE Canola Futures Firm On Oversold Price Sentiment
| 3 min read
| By Dwayne Klassen, Resource News International |
| April 21, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels as of 9:48 EDT. Canola values managed to post small advances overnight in view of ideas that the sell-off seen in canola earlier on Monday was overdone and that an upward correction was required, market watchers said.
Contributing to the strength displayed by canola were the overnight advances seen in e-CBOT soybean values. The advances in canola also came amid outlooks calling for CBOT soybean and soyoil futures to open on a firmer footing with the start of the North American day session, traders said. Weakness in the Canadian dollar combined with steady domestic processor demand amid profitable crush margins, were also seen providing canola with a firm price floor to work with, brokers said. The pricing of old export business was also generating some minor support for canola. Activity in canola was expected to be choppy ahead of Statistics Canada’s first survey of what kind of crops Canadian producers are planning on seeding this spring. The report is scheduled for release April 24. Keeping the upside in canola in check were the declines posted by Malaysian palm oil futures overnight. Weakness in global crude oil values early Tuesday and some minor declines in the North American equity sector were also seen keeping canola on the defensive, brokers said. On the charts, the intermediate outlook for canola continues to point up, but values have run into some near term overhead technical resistance, traders said. As of 9:48 am EDT, there were 553 canola contracts traded. At 9:48 am EDT, 32 western barley contracts had traded with prices unchanged to lower. Much of the activity was confined to the nearby May and July contracts with the rolling of positions out of May and into July the main feature of the activity, brokers said. Prices in Canadian dollars per metric ton at 9:48 am EDT: Price Change W.Barley Jul $135.60 dn 1.00 |
