ICE Canola Weaker, But Could See Short-Covering Bounce
| 1 min read
|
|
| By Phil Franz-Warkentin, Resource News International |
| January 28, 2010 |
| Winnipeg – ICE Canada canola futures were slightly weaker Thursday morning, but could be poised for a short-covering bounce higher given the firmer calls for the CBOT soy complex.
After dropping sharply on Wednesday, traders said the bias in canola was pointing decidedly lower. With no supportive fundamental news in the market, they expected the bearish technical signals would keep prices headed down. The Canadian dollar was stronger early in the day, which also weighed on canola. However, expectations for a short-covering bounce in the CBOT soy complex at the start of the North American session was providing some spillover support for canola, said analysts. The recent downturn in prices should also be uncovering export demand, while causing farmers to be reluctant sellers, traders added. About 600 canola contracts had traded as of 8:37 CST. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:37 CST: |
| Price | Change | ||
| Canola | |||
| Mar | 376.10 | dn 0.80 | |
| May | 382.90 | dn 0.50 | |
| Jul | 388.10 | dn 0.30 | |
| Western Barley | |||
| Mar | 148.00 | unch | |
| May | 153.00 | unch | |
