ICE Canola Narrowly Mixed, Lacking Direction
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| By Phil Franz-Warkentin, Resource News International |
| January 22, 2010 |
| Winnipeg – ICE Canada canola futures were narrowly mixed Friday morning, although the bias was to the downside early in the day.
Traders were divided as to which way the canola market would turn on Friday. While the technical outlook was still lower, there were also expectations for a continued recovery in the oilseed sector as prices bounce off recent lows. The CBOT soy complex was also being called mixed to start, lending little direction to canola. The Canadian dollar was weaker Friday morning, which provided some underlying support for canola, according to traders. Steady export demand was also helping underpin the market, traders added. Weather conditions in South America are also mixed. In Brazil, the conditions remain favourable for the developing soybean crops. However, dryness is starting to become a concern in Argentina. About 1,900 canola contracts had traded as of 8:44 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. However, the longer range forecasts are now pointing to colder weather later in the month. Prices in Canadian dollars per metric ton at 8:44 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 383.40 | up 0.10 | |
| May | 389.80 | dn 0.60 | |
| Jul | 395.20 | dn 0.50 | |
| Western Barley | |||
| Mar | 149.50 | unch | |
| May | 155.50 | unch | |
