ICE Canola Futures Drop on End of Month Profit-taking
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 29, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 9:36 EDT. End of week and end of month profit-taking by a variety of market participants put downward pressure on canola futures overnight, industry watchers said.
The continued uptrend in the value of the Canadian dollar also fueled some of the price weakness in canola. Declines overnight in e-CBOT soybean futures, along with losses in Malaysian palm oil and European rapeseed values, helping to influence some of the downward price action seen in canola, brokers said. Weaker calls for CBOT soybean and soyoil values with the start of the North American day session was also helping to undermine canola values, traders said. Elevator company hedge selling ahead of the weekend was also anticipated and was helping to put so me downward price pressure on canola, brokers said. The absence of fresh, confirmed export business for canola was contributing to the price weakness. Some underlying support in canola was coming from continued strong domestic crusher demand. Supportive chart signals were helping to keep a firm floor under canola values, brokers said. Position evening ahead of the weekend was a minor feature of the activity so far in canola, traders said. As of 9:36 EDT, there were 696 canola contracts traded. As of 9:36 EDT, no western barley contracts had been traded.
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