ICE Canola Contracts Down, CBOT Soyoil Losses Bearish
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 16, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at significantly lower price levels at midday. Declines in canola were a function of the losses seen in the outside oilseed markets, including CBOT soyoil, market watchers said.
Malaysian palm oil and European rapeseed futures moved lower in overnight activity and helped to spark some of the early selling interest in canola, brokers said. The start of the North American day session saw both CBOT soybean and soyoil futures move down, stimulating some additional selling interest in canola, they said. The downward price slide spurred local and speculative accounts into action, with most of those orders seen as the liquidation of positions, traders said. The absence of fresh, confirmed export business contributed to the price declines seen in canola as did the backing away from the market by domestic processors, brokers said. Reduced profit margins resulted in the crushing sector backing away from the market. Global economic worries also helped to spark some of the selling from the speculative and local sector, traders said. The losses in canola were slowed by the down swing in the value of the Canadian dollar and by scale down buying by commercial accounts, much of which was believed to be pricing old export business. There were an estimated 9,598 canola contracts traded at 10:28 CST. Of the contracts traded, 1,444 were spread related. There were no western barley futures traded as of 10:28 CST.
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