ICE Canola Lower On Follow-Through Selling
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| July 16, 2009 |
| Winnipeg – ICE Canada canola futures were lower in overnight trade, seeing some follow-through selling on Wednesday’s weaker close. With calls for a lower start in the CBOT soy complex, traders expected the weaker tone will continue through the North American session.
Ideas that North American crop conditions are generally improving should also weigh on canola. However, traders pointed out that there is still some concern about the canola crops in Alberta and Saskatchewan, which should keep canola supported relative to soybeans. Cool overnight temperatures continue to slow the development of canola crops in western Canada, with temperatures dipping as low as 3 degrees Celsius in parts of Saskatchewan Thursday morning. The slow crop development is increasing concerns that the crops will be at risk of an early frost in late September or August. The Canadian dollar was slightly weaker Thursday morning, and could provide some underlying support for canola. However, the currency has shown considerable strength over the past week and Thursday’s correction lower was small in comparison. About 340 canola contracts had traded as of 8:45 CDT, the bulk of that in the November futures month. Western barley futures were untraded in overnight activity, but could be headed lower in line with the outside markets. Prices in Canadian dollars per metric ton at 8:45 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 416.60 | dn 5.00 | |
| Jan | 420.10 | dn 5.60 | |
| Mar | 429.70 | unch | |
| Western Barley | |||
| Oct | 163.00 | unch | |
| Nov | 183.50 | unch | |
