ICE Canola Weaker On Bearish Technicals
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| July 8, 2009 |
| Winnipeg – ICE Canada canola futures traded to both sides of unchanged in overnight activity, but were mostly lower by 8:42 CDT Wednesday morning as the market lacked much incentive to move higher.
After dropping sharply lower on Monday and Tuesday there were some thoughts that canola could be due for a corrective bounce higher, according to a market analyst. However, he added that the charts are looking decidedly bearish for canola, and any signs of strength will be taken as a selling opportunity. Overnight losses in Malaysian palm oil and European rapeseed, along with a mixed tone in CBOT soybeans, should also weigh on canola, according to traders. A firmer Canadian dollar, weaker equities, and losses in crude oil were also seen as bearish for canola. On the other side, a lack of farmer selling should provide some support for the market. Crop conditions also remain a concern in some areas despite recent rainfall and should remain a supportive influence until the market gets a better handle on production prospects. Early activity in canola was light, with 377 contracts having been traded as of 8:42 CDT. Western barley futures were untraded in overnight activity. Prices in Canadian dollars per metric ton at 8:42 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 423.10 | dn 0.70 | |
| Jan | 426.10 | dn 1.40 | |
| Mar | 432.60 | unch | |
| Western Barley | |||
| Oct | 173.10 | unch | |
| Nov | 187.80 | unch | |
