ICE Canola Weaker, As Bearish USDA Report Weighs
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| January 12, 2010 |
| Winnipeg – ICE Canada canola futures were lower Tuesday morning, finding little support from either the fundamentals or the technicals. Updated supply/demand tables released by the USDA Tuesday morning were largely seen as bearish for the CBOT grains and oilseeds, which put some spillover selling pressure on canola, according to traders.
The USDA pegged the US soybean crop at a record 3.361 billion bushels, which was within trade expectations but well above the 2.967 billion bushel crop grown the previous year. The large US soybean crop will soon be facing competition from the looming South American crop, which should keep oilseed values pointed lower, according to an analyst. Routine exporter pricing on a scale-down basis provided some support for canola, limiting the declines. Ideas that recent declines in canola were overdone, leaving the market open to a correction, could also encourage some buying, an analyst added. The Canadian dollar was slightly weaker early in the day, which was another supportive factor for canola. About 1,050 canola contracts had traded as of 8:47 CST. Western barley futures were untraded and unchanged in overnight activity. Calls for a sharply lower start in CBOT corn could generate some spillover selling pressure in barley. The USDA unexpectedly increased its corn production estimate by 230 million bushels, when the majority of market participants had anticipated a cut. Prices in Canadian dollars per metric ton at 8:47 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 386.60 | dn 6.70 | |
| May | 394.00 | dn 6.60 | |
| Jul | 399.70 | dn 6.90 | |
| Western Barley | |||
| Mar | 152.30 | unch | |
| May | 157.60 | unch | |
