ICE Canola Futures Mainly Lower On Carryover Selling
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 27, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 9:41 EDT. Follow-through commodity fund liquidation orders from Wednesday’s lower close helped to put canola on the defensive, market watchers said.
Adding to the bearish price atmosphere in canola was the continued uptrend in the value of the Canadian dollar, brokers said. The absence of fresh exporter demand and the mainly favourable growing conditions across western Canada for the development of the canola crop was also an undermining price influence. Weakness in canola was also linked to ideas that the area planted to canola by western Canadian producers was well above early projections. Private estimates have pegged Canada’s canola area at 18.0 million acres and higher. Well above 2009 plantings of a record 16.1 million acres. Some underlying support in canola was coming from light scale-down domestic crusher demand and the pricing of old export business to Japan by commercials. The slow pace of producer offerings to the grain companies in western Canada helped to limit the downside, as did the advances seen in Malaysian palm oil and Matif rapeseed values overnight, analysts said. The higher calls for CBOT soybean and soyoil futures with the start of the North American day session also was providing some light underlying support for canola. As of 9:41 am EDT, there were 589 canola contracts traded. As of 9:41 am EDT, no western barley contracts had been traded. |
