ICE Canola Weakens Slightly As Weather Improves
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| By Phil Franz-Warkentin, Resource News International |
| April 12, 2010 |
| Winnipeg – ICE Canada canola futures traded within a narrow range in overnight activity, but were mostly lower Monday morning. Improving weather conditions in some of the dry areas of Alberta and Saskatchewan were said to be putting some pressure on prices.
The recent precipitation in Alberta and Saskatchewan helped alleviate some of the dryness concerns in those areas, taking some of the weather premium out of the canola market, according to traders. However, traders added that there is still a long growing season ahead and more moisture was still needed to take those risk premiums out of the market completely. The large South American soybean crop, along with expectations for increased North American soybean and canola acres, remained a bearish influence on canola, according to traders. Overnight losses in Malaysian palm oil futures were also putting some spillover pressure on the market. Expectations for a slightly firmer start in the CBOT soy complex should provide some underlying support for canola, limiting the downside, according to traders. The Canadian dollar was slightly weaker early in the day, providing some further support for canola. About 1,050 canola contracts had traded as of 8:49 CDT. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:49 CDT: |
| Price | Change | ||
| Canola | |||
| May | 380.80 | dn 0.30 | |
| Jul | 387.80 | dn 0.10 | |
| Nov | 390.50 | dn 1.40 | |
| Western Barley | |||
| May | 154.00 | unch | |
| Jul | 145.50 | unch | |
