ICE Canola Weaker In Choppy Pre-Holiday Trade
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| December 24, 2009 |
| Winnipeg – ICE Canada canola futures were weaker in light overnight activity. Trade was expected to remain choppy through the session, with the market closing early ahead of Christmas. ICE Futures Canada will remain closed until Tuesday, December 29.
Eroding crush margins were putting some pressure on canola values, according to traders. Bearish technical signals were also weighing on prices, as the March contract tested the psychological C$400 support level in overnight trade. The Canadian dollar was slightly firmer early in the day, adding to the weaker tone in canola. The CBOT soy complex was mixed in overnight electronic activity, with gains in soyoil, but slight losses in soybeans and soy meal. The direction the soy complex takes at the start of the North American session should spill-over into the canola market, according to traders. While the overall technical bias remains to the downside in canola, an analyst said the recent weakness in canola may have been overdone. He said the market could be due for a correction. A lack of farmer selling ahead of Christmas should also provide some underlying support for canola. Routine exporter pricing was also expected to remain a supportive price influence. About 1,300 canola contracts had traded as of 8:53 CST. Western barley futures were unchanged and untraded in overnight activity. Prices in Canadian dollars per metric ton at 8:53 CST: |
| Price | Change | ||
| Canola | |||
| Jan | 395.00 | dn 0.90 | |
| Mar | 399.60 | dn 1.50 | |
| May | 407.20 | unch | |
| Western Barley | |||
| Jan | 156.00 | unch | |
| Mar | 156.00 | unch | |
