ICE Canola Futures Ease, Profit-taking Blamed
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| February 11, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at 9:28 EST. Light profit-taking by speculative accounts helped to fuel some of the downward price slide seen in canola, market watchers said.
Some early hedging by elevator companies helped to undermine values, with forward pricing of contracts behind some of that selling interest, traders said. The mixed e-CBOT soybean trade overnight also caused some nervous position holders to bail out of canola Friday morning, analysts said. Less than clear calls for CBOT soybean and soyoil futures with the start of the North American day session was keeping participants in canola on the defensive. The absence of fresh export demand for Canadian canola was an undermining price influence as was the improved weather conditions in the soybean growing regions of Argentina, traders said. Underlying support in canola came from the gains seen overnight in Malaysian palm oil and European rapeseed futures. The need to ensure that western Canadian producers plant enough area to canola this spring also continued to be a supportive factor in the market, analysts said. Domestic crusher demand and the pricing of routine export business also continues to provide a firm floor for canola values. As of 9:28 EST, there were 198 canola contracts traded. As of 9:28 EST, 5 western barley contracts had been traded.
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