ICE Canada Review: Canola Drops On Pre-Weekend Liquidation
| 2 min read
| By Dwayne Klassen, Resource News International |
| September 3, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session on the defensive with late day profit-taking and the liquidation of positions by a variety of market participants ahead of the Labor Day holiday weekend behind the declines, industry sources said.
Both Canadian and US markets will be closed on Monday, September 6 in observance of Labor Day. Some position evening ahead of the Statistics Canada grain stocks in all positions report as of July 31 on Wednesday, September 8 and new USDA supply/demand tables on Friday, September 10, was also evident. Canola contracts traded at both higher and lower levels during the day. Early support in canola came from the gains seen overnight in Malaysian palm oil and European rapeseed futures. The advances in CBOT soybean and soyoil values also helped to generate some of the early support for canola, brokers said. Concerns about the slow pace of the harvest due to steady rainfall across much of the Canadian prairies also gave canola values a boost as well, especially as any delays will leave the crop vulnerable to an early frost, traders said. The advances in canola, however, were offset throughout the day and turned lower at the close in response to steady levels of selling, some of which was believed to be profit-taking as well as hedge offers from grain companies. The strong Canadian dollar also caused end-users to back away from the canola market, which added to the bearish sentiment. Spreading was a feature of the activity and helped to augment the volume total. There were an estimated 10,145 canola contracts traded Friday, down from the 13,568 contracts that changed hands during the previous session. Of the contracts traded, 3,230 were spread related. Western barley futures were unchanged and untraded on Friday. On Thursday, no barley contracts changed hands. |
