ICE Canola Up On Sluggish Selling
| 2 min read
By Don Bousquet
| By Don Bousquet, Resource News International |
| June 30, 2009 |
| Winnipeg – Grain and oilseed futures on ICE Canada Futures closed Tuesday’s session mixed with canola lifted from moderate losses by a slowing pace to selling in the last hour of the session, brokers said. Canola saw a moderate volume with only modest intermonth spreading evident. Evening up was noted ahead of this week’s holidays as ICE Canada is closed on Wednesday for Canada Day while the Chicago Board of Trade will be closed on Friday for the US Independence Day weekend. The total canola volume was estimated at 9,405 contracts, up from Monday’s 6,883 contracts, including an estimated 1,638 contracts involved in the spread trade. Canola was lower in the overnight market reflecting follow through selling from Monday’s declines and bearish technical signals. Canola maintained moderate losses as the North American trading session opened and the US soy complex dropped sharply. In the last hour canola prices turned higher on light commercial buying as selling faded and the US soy complex bounced off their lows. Canola ended with gains. Canola drew support from continued concerns about crop problems prompted by a adverse weather across the prairies. The weak Canadian dollar and favorable crush margins also gave support. In the last hour of the trading session, selling pressure eased and that allowed the market to rally. Brokers noted that commodity fund selling was also being done on a scale up which contributed to the firmer tone in the market. Weighing on the market was the decline in the US soy complex, slow fresh demand and the bearish technical signals. Speculative stop loss selling was triggered, pressuring the market down early, analysts said. Crushers were the best buyers with only routine exporter buying noted. The selling was mainly commercial with commodity fund liquidation selling appearing as traders estimated their selling at 1,000 – 1.200 Nov contracts. Commission houses were also sellers. Western barley ended lower in light commercial trade. The market was undermined by the limit declines in CBOT corn futures and reports that large volumes of US distiller’s grain, a feed byproduct of ethanol production, The total barley volume was estimated at 85 contracts, down from 171 contracts on Monday. Prices are in Canadian dollars per metric ton: |
| Price | Change | ||
| Canola | |||
| Jul | 456.00 | up 1.00 | |
| Nov | 455.50 | up 3.50 | |
| Jan | 459.60 | up 3.40 | |
| Western Barley | |||
| Oct | 174.00 | dn 1.50 | |
| Nov | 194.90 | dn 0.10 | |
