ICE Canola Futures Mostly Up, Weak C$ Supportive
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 24, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher levels at 9:42 EST with strength associated with the pull-back in the value of the Canadian dollar, market watchers said.
Activity in canola has been thin so far, with few participants willing to establish large positions ahead of the US Thanksgiving holiday Thursday. Light exporter pricing of old business was seen as supportive for canola as was the unwillingness of producers to be aggressive sellers of canola into the cash pipeline, brokers said. Talk of fresh business being conducted was also supportive for canola, but confirmation from exporters was lacking. The upside in canola was limited by the declines posted in e-CBOT soybean futures overnight as well as by the losses experienced by Malaysian palm oil and European rapeseed futures. The lower calls for CBOT soybean and soyoil values with the start of the North American day session also limited the upside. Losses in global crude oil futures early Tuesday were also being viewed as an undermining price influence for canola. Helping to keep canola futures on the defensive were China’s import restrictions and the US Food and Drug Administration’s prohibition on Canadian canola meal imports due to salmonella issues. Canola was also being kept on the defensive by overheat technical resistance levels. As of 9:42 am EST, there were 374 canola contracts traded. As of 9:42 am EST, no western barley contracts had been traded. |
