ICE Canola Turns Lower As Short-Covering Fades
| 1 min read
|
|
| By Phil Franz-Warkentin, Resource News International |
| February 10, 2010 |
| Winnipeg – ICE Canada canola futures were lower Wednesday morning, as the short-covering bounce seen earlier in the week appears to be coming to an end, said market participants.
An analyst said the mixed close in canola on Tuesday was a technical sign that the futures may have run into chart resistance. Malaysian palm oil, European rapeseed, and e-CBOT soyoil were all originally firm in overnight trade before eventually drifting off those highs. With the trend starting to point downward in the outside markets, canola was also expected to come under some selling pressure. CBOT soybeans were being called mixed to start the North American session, with expectations for losses in soyoil and gains in soymeal. Ample canola supplies in western Canada should also weigh on values. The Canadian dollar was slightly firmer Wednesday morning, putting some further pressure on canola, according to traders. About 1,300 canola contracts had traded as of 8:41 CST, with the majority of the activity tied to inter-month spreading as participants continue to roll out of the nearby March contract. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:41 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 381.50 | dn 4.40 | |
| May | 387.40 | dn 4.70 | |
| Jul | 391.50 | dn 5.10 | |
| Western Barley | |||
| Mar | 149.00 | unch | |
| May | 154.00 | unch | |
