ICE Canola Contracts Lose Ground on CBOT Sell-Off
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 12, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at midday with speculative and local liquidation sparked by the declines in the CBOT soybean complex generating the downward price slide, market watchers said.
Much of the selling interest in global commodities was spurred on by rumours that a Chinese interest rate hike was being considered in an effort to cool rising inflation. Renewed European debt fears also have re-ignited investor concerns, and helped to fuel the selling that surfaced in canola, brokers said. A pick up in elevator company hedge selling was also evident in canola, and helped to undermine values, traders said. Overbought market conditions contributed to the weakness in canola as did profit-taking. The absence of fresh export demand sparked some of the downward price action in canola as did a slow down in the level of buying by domestic processors, brokers said. The weakness in canola was tempered by the pull-back in the value of the Canadian dollar. Gains in the US markets when the ICE Canada trading platform was closed in observance of Remembrance Day also helped to restrict the price drop. There were an estimated 6,045 canola contracts traded at 10:26 CST. Of the contracts traded, 1,068 were spread related. There were no western barley futures traded as of 10:26 CST.
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