ICE Canola Futures Mostly Down On Bearish Fundamentals
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 8, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 9:38 EST. Much of the downward price action was associated with the bearish fundamental picture for the commodity, market watchers said. The nearby Jan future found some support from slow farmer sales and steady nearby demand.
The larger than anticipated canola crop in western Canada continues to be a key bearish influence with the absence of fresh Chinese demand helping to put some downward pressure on prices. Technical resistance levels were also seen holding and helping to put some canola contracts on the defensive. Losses in global crude oil and the North American equity markets were also viewed as undermining price influences, brokers said. The losses were being limited by the gains seen overnight in e-CBOT soybeans and Malaysian palm oil futures. The higher calls for CBOT soybean and soyoil values with the start of the North American day session were also generating some underlying support for canola, traders said. The absence of significant producer offerings also provided a firm floor for values. Weakness in the Canadian dollar early Tuesday was generating some support. Some evening up of positions ahead of Thursday’s latest round of supply/demand reports from the USDA was a feature of the activity seen in canola. As of 9:38 am EST, there were 317 canola contracts traded. As of 9:38 am EST, no western barley contracts had been traded. |
