ICE Canola Futures Hold Steady In Choppy Trade
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 5, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly steady levels with prices chopping around to both sides of the plus/minus line as of 9:40 EST. Some of the weakness overnight was tied to the declines seen overnight in the overseas oilseed markets, industry watchers said.
Some position evening ahead of next week’s latest round of supply/demand reports from the USDA was also a feature of the activity, brokers said. The e-CBOT soybean market lost ground overnight as did Malaysian palm oil and European rapeseed futures, brokers said. The steady to easier calls for CBOT soybeans and soyoil with the start of the North American day session was also an undermining price influence on canola. Helping to stimulate some selling in canola were the weather outlooks calling for clear and warm conditions during the weekend and into early next week across much of western Canada. Producers were seen making good harvest progress during this window of opportunity, traders said. Expectations for a large South American soybean crop will also be an underlying bearish factor for canola. Uncertainty surrounding Canadian canola exports to China after November 15 when China implements blackleg import restrictions also is being viewed as an undermining price factor. Strength in the Canadian dollar in early Thursday morning activity was also helping to put canola contracts on the defensive, brokers said. Support was linked to the slow pace of producer offerings into the cash market and to light, but steady demand from domestic crushers, traders said. The pricing of old export business also generated some minor support. As of 9:40 am EST, there were 865 canola contracts traded. As of 9:40 am EST, no western barley contracts had been traded. |
