ICE Canola Holding Steady, Awaiting Fresh News
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| January 15, 2010 |
| Winnipeg – ICE Canada canola futures were narrowly mixed in overnight trade, lacking any clear direction. Traders thought the oversold market could be due for a corrective bounce before the weekend. However, the overall fundamental and technical picture remains bearish.
The CBOT soy complex provided little direction in the overnight electronic trade, and is being called steady-to-mixed to start the North American session. US markets will be closed Monday for Martin Luther King Jr. Day, and position evening ahead of the long weekend could keep the oilseed markets subdued on Friday, according to analysts. Canadian markets will remain open on Monday. Large South American soybean crop prospects remain bearish for the oilseed markets, including canola, said an analyst. A weaker tone in gold and crude oil should also lead to spillover selling pressure in the agricultural commodities. On the other side, the Canadian dollar was slightly weaker Friday morning, which is supportive for canola. However, the currency is still firm overall, holding well above 97 US cents. Reluctant farmer selling, as cash bids erode in western Canada, will also help underpin the futures market, according to traders. About 230 canola contracts had traded as of 8:44 CST. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:44 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 385.00 | unch | |
| May | 392.40 | up 0.20 | |
| Jul | 396.90 | dn 0.60 | |
| Western Barley | |||
| Mar | 151.00 | unch | |
| May | 157.00 | unch | |
