ICE Canola Futures Weaken On Firm C$, Supply Build- Up
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 22, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly lower levels at 9:34 EST. Weakness in canola was linked to the strength of the Canadian dollar against other foreign currencies and to a build up of supply in the cash pipeline, market watchers said.
Activity was on the lighter side with participants starting to take to the sidelines to wait out the Christmas and New Year’s holidays. ICE Futures Canada will close at 1:00 EST on Thursday, December 24. The Exchange will be closed on Friday, December 25 and again on Monday, December 28. Some of the downward price action seen in canola also reflected the declines posted by Malaysian palm oil futures overnight, brokers said. The absence of fresh export demand was also keeping canola on the defensive, traders said. They noted that the latest statistics from the Canadian Grain Commission show canola supplies in the commercial pipeline are up. The early declines in global crude oil futures were also an undermining price influence on canola. Some of the early activity in the January canola future was linked to the rolling out of positions and into the March contract. Underlying support in canola was coming from the small gains seen in eCBOT soybean values overnight and the steady to slightly firmer calls for CBOT soybeans with the start of the North American day session, traders said. Slow producer offerings and scale down domestic crusher demand was also helping to temper the downward price action. As of 9:34 am EST, there were 698 canola contracts traded. As of 9:34 am EST, no western barley contracts had been traded. Much of the anticipated activity in barley will likely be the realigning of spreads, brokers said. |
