ICE Canola Weaker On Follow-Through Selling
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| By Phil Franz-Warkentin, Resource News International |
| April 1, 2010 |
| Winnipeg – ICE Canada canola futures were weaker Thursday morning, seeing some follow-through selling on Wednesday’s lower close. The stronger tone in the Canadian dollar was also bearish for canola values.
After dropping lower in sympathy with CBOT soybeans on Wednesday, canola remained pointed down in overnight trade. The weakness in canola was coming despite expectations for a slight correction higher in soybeans. Traders said canola may also see a short-covering bounce ahead of the Easter long weekend, but added that the strong Canadian dollar may limit any advances. The currency was trading above 99 US cents in early activity. Canadian and US markets will be closed Friday for the Good Friday holiday, and some positioning ahead of the weekend was expected. Dry conditions in Alberta and Saskatchewan heading into the spring planting season remain a supportive price influence for canola. However, acres are still expected to be up across the Canadian Prairies, tempering the upside. Malaysian palm oil futures were lower in overnight activity. About 650 canola contracts had traded as of 8:54 CDT. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:54 CDT: |
| Price | Change | ||
| Canola | |||
| May | 379.10 | dn 0.90 | |
| Jul | 384.50 | dn 1.40 | |
| Nov | 385.10 | dn 1.20 | |
| Western Barley | |||
| May | 154.00 | unch | |
| Jul | 145.00 | unch | |
