ICE Canola Strengthens In Consolidative Trade
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| By Phil Franz-Warkentin, Resource News International |
| January 21, 2010 |
| Winnipeg – ICE Canada canola futures were stronger Thursday morning, after moving to both sides of unchanged in overnight activity. The market was said to be seeing some consolidation on oversold price sentiments, according to analysts.
Calls for a firmer start for the CBOT soy complex were providing some underlying support for canola, according to a trader. Steady export demand was also helping underpin the market, traders added. The Canadian dollar was sharply weaker on Wednesday, and canola continued to find some spillover support from the currency. However, the Canadian dollar was starting to show some recovery Thursday morning, which could temper the upside in canola. In addition, an analyst said the technical bias in canola remains to the downside. He expected any short-covering bounce would likely be short lived, with selling coming back before prices move too high. About 1,170 canola contracts had traded as of 8:45 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 8:45 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 381.00 | up 1.80 | |
| May | 387.90 | up 2.00 | |
| Jul | 393.50 | up 2.30 | |
| Western Barley | |||
| Mar | 150.00 | unch | |
| May | 156.00 | unch | |
