Wednesday, 5 August 2009

ICE Canola Down On Profit-Taking/CBOT Soyoil Losses

ICE Canola Down On Profit-Taking/CBOT Soyoil Losses

WINNIPEG (Dow Jones)--Canola contracts on the ICE Futures Canada platform were trading at lower price levels with profit-taking after strong gains on Tuesday and the downturn in CBOT soyoil linked to the declines, market watchers said.

Activity remained on the light side with volumes confined to the nearby November, January and March contracts.

Sentiment that the advances seen Tuesday were overdone and in need of a downward correction helped to weigh on canola, brokers said.

A drop off in exporter demand also resulted in canola values experiencing some weakness. There were indications China had been seeking quantities of Canadian canola earlier in the week, but no confirmation of any sales was available, brokers said.

The upside in canola was also tempered by the mainly favorable growing conditions for North American crops.

The losses in canola were being limited by the uncertain growing conditions in western Canada and the possibility of an early frost. The reluctance of producers to deliver canola into the cash pipeline was also helping to slow the price drop, brokers said.

Gains overnight in Malaysian palm oil futures contributed some minor support to canola with small gains in CBOT soybean futures also an underpinning price influence.

The Canadian dollar was trading at a slightly weaker level Wednesday, but the currency's move was having little overall impact on canola's price direction.

There were an estimated 2,231 canola contracts traded at 11:32 a.m. CDT. Of the contracts traded, 508 were spread related.

Western barley futures were unchanged and untraded.

There were no western barley futures traded as of 10:32 a.m. CDT.

Prices in Canadian dollars per metric ton at 10:32 a.m. CDT:


Price Change
Canola
Nov 431.70 dn 3.60
Jan 437.00 dn 3.00
Mar 438.20 dn 5.80
Western Barley
Oct 152.90 unchanged
Nov 172.00 unchanged


-By Dwayne Klassen, contributing to Dow Jones Newswires; (204)- 947-1700; resnews@shawbiz.ca

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(END) Dow Jones Newswires

August 05, 2009 12:00 ET (16:00 GMT)

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