ICE Canola Weakens Below Technical Support
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| January 18, 2010 |
| Winnipeg – ICE Canada canola futures were weaker in overnight trade, pressured by bearish technical signals, the firm Canadian dollar, and a lack of non-routine demand, said traders.
The March canola contract moved below the nearby support level of C$380 per metric ton in overnight activity, drawing in some more speculative selling, according to an analyst. However, the market is also looking oversold from a technical standpoint, and the futures were well off their overnight lows by Monday morning. South American weather conditions remain favourable for the soybean crops, keeping the global oilseed markets under pressure. European rapeseed and Malaysian palm oil futures were both lower in overnight activity. The US markets are closed on Monday for Martin Luther King Jr. Day. The lack of activity in CBOT soybeans could keep the canola market relatively subdued, as participants wait for the US market to reopen. The Canadian dollar was firmer Monday morning, adding to the weaker tone in canola, according to traders. Light exporter pricing of routine business provided some support on a scale-down basis, limiting the losses. However, traders pointed out that the fresh business that would take prices higher was lacking. Reluctant farmer selling, as prices have deteriorated in western Canada, also provided some support. About 2,900 canola contracts had traded as of 8:42 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. Prices in Canadian dollars per metric ton at 8:42 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 378.50 | dn 3.30 | |
| May | 385.40 | dn 3.40 | |
| Jul | 390.20 | dn 4.00 | |
| Western Barley | |||
| Mar | 152.00 | unch | |
| May | 158.00 | unch | |
