ICE Canola Futures Weaken As Outside Oilseeds Decline
| 2 min read
| By Dwayne Klassen, Resource News International |
| April 13, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels as of 9:49 EDT. Declines in canola were linked to the weakness in the outside oilseed markets and ideas that canola is too overpriced to attract fresh export demand, market watchers said.
Losses in e-CBOT soybeans overnight, combined with losses in Malaysian palm oil futures helped to undermine canola, brokers said. Adding to the downward price momentum were the declines in global crude oil values and early losses in the North American stock markets. Some of the selling that surfaced in canola was also in anticipation of a lower start to CBOT soybean values with the start of the North American trading day, traders said. Slowing demand for canola from the export sector helped to weigh on values, traders said. They estimated that canola was overvalued to the tune of about C$20 per metric ton. Some support in canola was coming from good domestic processor demand and the slow pace of farmer deliveries given spring road restrictions. Weakness in the Canadian dollar early on Monday was also an underpinning price influence. Market participants were expecting a quiet day of activity given the Easter Monday holiday being honoured by some countries and by Canadian government workers. As of 9:49 am EDT, there were 483 canola contracts traded. At 9:49 am EDT, no western barley contracts had traded with prices unchanged. Prices in Canadian dollars per metric ton at 9:49 am EDT: Price Change W.Barley May $135.00 unch |
