ICE Canola Mixed, Lacking Clear Direction
| 1 min read
By Phil Franz-Warkentin, Resource News International |
January 19, 2010 |
Winnipeg – ICE Canada canola futures were narrowly mixed in overnight activity, trading to both sides of unchanged amid a lack of any clear market moving news.
After posting losses on Monday, while the US markets were closed for a holiday, the oversold canola market could be due for a recovery, said an analyst. He added that cheaper canola prices could also help generate some increased exporter demand. The lower prices could also serve to keep farmers from selling. However, with the bias pointing to the downside, traders noted that there could be other farmers looking to increase their selling before prices drop too far. The Canadian dollar was weaker Tuesday morning, which should provide some support for canola values, according to traders. CBOT soybeans are being called steady to lower to start the North American session, putting some downward pressure on canola. Technical signals are also pointing lower for canola, after the nearby March contract closed below the key support level of C$380 per metric ton on Monday. About 2,700 canola contracts had traded as of 8:48 CST. Western barley futures were untraded and unchanged in overnight activity. Warm weather conditions across western Canada are likely cutting into feed demand, which should weigh on barley values, according to analysts. Prices in Canadian dollars per metric ton at 8:48 CST: |
Price | Change | ||
Canola | |||
Mar | 375.80 | dn 0.80 | |
May | 384.40 | up 0.40 | |
Jul | 390.10 | up 0.30 | |
Western Barley | |||
Mar | 150.00 | unch | |
May | 156.00 | unch |