ICE Canola Sees Modest Correction Lower
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| By Phil Franz-Warkentin, Resource News International |
| June 17, 2010 |
| Winnipeg – ICE Canada canola futures were slightly lower Thursday morning, as the buying that caused prices to rally over the past week backed away in the overnight activity and some profit-taking came forward.
Traders said canola was running into some overhead resistance in the price charts, which encouraged some selling. A slowdown in domestic crusher demand, as crush margins have deteriorated, added to the weaker tone. However, the wet weather concerns that triggered the recent rally in canola remained a supportive factor in the market, as traders are unsure just how many acres will be left unseeded and how much damage there will be to the canola already in the ground. While prices are nearing some technical resistance levels, an analyst said the market may need to move higher still in order to ration demand. Calls for a higher start in the CBOT soy complex, along with overnight gains in Malaysian palm oil futures were also helping limit the declines in canola. About 1,300 canola contracts had traded as of 8:27 CDT. Western barley futures were untraded and unchanged early in the day. Prices in Canadian dollars per metric ton at 8:27 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 427.40 | dn 2.60 | |
| Nov | 424.90 | dn 2.20 | |
| Jan | 425.40 | dn 2.80 | |
| Western Barley | |||
| Jul | 147.50 | unch | |
| Oct | 150.00 | unch | |
