ICE Canola Lower Following Outside Markets
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| By Phil Franz-Warkentin, Resource News International |
| June 8, 2009 |
| Winnipeg – Canola contracts traded on ICE Futures Canada were lower in overnight activity, as losses in the outside equity and commodity markets spilled over to weigh on the futures.
Malaysian palm oil, European rapeseed, and e-CBOT soybeans were all lower in overnight activity, accounting for some of the weakness in the canola market, according to traders. A general lack of exporter and domestic crusher demand also weighed on canola, and was expected to continue to keep prices under pressure through the North American session, said traders. However, adverse weather conditions across the Canadian Prairies should keep the canola market well supported. Temperatures remain unseasonably cool, with reports of frost in many areas over the weekend. In addition to the cold, dryness remains a concern in parts of Alberta and Saskatchewan, while excessive moisture has hampered seeding efforts in Manitoba. The Canadian dollar was slightly weaker Monday morning, which should also be supportive for canola, according to traders. Roughly 660 canola contracts had traded by 8:45 CDT, with spreading between the July and November contracts a minor feature. Western barley futures were untraded in overnight trade, although calls for a lower start in CBOT corn could put some pressure on the barley market. Prices in Canadian dollars per metric ton at 8:45 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 473.00 | dn 2.30 | |
| Nov | 477.00 | dn 4.00 | |
| Jan | 486.30 | unch | |
| Western Barley | |||
| Jul | 168.00 | unch | |
| Oct | 180.00 | unch | |
