Nearby ICE Canola Contracts Up, Deferreds Down
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 17, 2010 |
| Winnipeg – Nearby canola contracts on the ICE Futures Canada platform were trading at slightly firmer levels while the deferred contracts were on the defensive. Talk of fresh export demand provided some support to the nearby months while the continued downward price slide in CBOT soyoil prompted the selling in the deferred months, market watchers said.
There were indications of some fresh export demand for Canadian canola, with Mexico rumoured to have bought undisclosed quantities for an unspecified delivery date, brokers said. Sentiment that the declines seen in canola on Tuesday were overdone, also helped to influence some strength as nearby values corrected to the upside, traders said. Signs of weakness in the Canadian dollar early Wednesday also provided some support for the nearby contracts, traders said. Gains in CBOT soybean values also underpinned values. Tempering the advances in the nearby canola contracts was continued hedge selling by line companies, given ideas that producers would deliver canola into the cash pipeline due to the sell-off in canola futures, brokers said. Weakness in the deferred values was associated with the continued downtrend in CBOT soyoil futures and the absence of fresh demand. A decline in the level of profitability by western Canada`s canola processing sector helped to fuel the downward price action, brokers said. Commodity fund long liquidation was also an undermining price influence. There were an estimated 8,692 canola contracts traded at 10:32 CST. There were no western barley futures traded as of 10:32 CST.
|
