ICE Canada Review: Canola Down As Demand Drops, Sybns Ease
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 27, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform ended Wednesday’s session with significant declines. Losses were stimulated by the weakness displayed by the CBOT soybean complex and by the absence of fresh demand, market watchers said. The pull-back in the value of the Canadian dollar helped to slow the downward price slide.
Activity was described as choppy by market participants. Steady selling by commercials and speculators accounted for the downward price movement in canola, with some of that selling tied to bearish chart signals and to the large global oilseed supply situation, traders said. The sell-off seen in CBOT soybean and soyoil futures helped to undermine canola as did the losses seen overnight in Malaysian palm oil. Reduced demand from the export and domestic sectors added to the price weakness in canola as did light bouts of hedging by elevator companies, brokers said. Much of the buying seen in canola during the session was conducted on a scale down basis. Spreading was a feature of the activity and helped to augment the volume total. There were an estimated 10,258 canola contracts traded Wednesday, up from 7,966 during the previous session. Of the contracts traded, 4,572 were spread related. Western barley futures were lower with it only taking a small amount of commercial offerings to push values down, traders said. The lack of fresh end-user demand and the price weakness in CBOT corn futures were behind much of the downward price momentum seen in the commodity. An estimated 55 barley contracts changed hands during the session. On Tuesday, 18 barley contracts were traded. |
