ICE Canada Review: Canola drops on CBOT losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 19, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session with significant declines. The losses exhibited by CBOT soybean and soyoil values encouraged the downward price action seen in canola with the triggering of sell-stop orders amplifying the weakness, market watchers said.
Adding to the bearish sentiment in canola was the liquidation of positions ahead of the first Canadian crop production survey for the 2010/11 (Aug/Jul) season from Statistics Canada scheduled for release early Friday morning. Sentiment that the canola crop in western Canada has increased in size due to improved growing conditions over the past month helped to undermine values, brokers said. Weakness in canola also came from the favourable weather conditions for the harvest of the crop in western Canada, traders said. The record production prospects for the US soybean crop added to the price declines in canola as did the lack of fresh export business being put on the books, brokers said. Chart-based speculative liquidation only served to further depress canola futures. Some underlying support in canola came from steady domestic processor demand and the pricing of old export business to Japan. Spreading was a feature of the activity in canola and helped to augment the volume total. There were an estimated 14,235 canola contracts traded Thursday, up from the 11,370 contracts that changed hands during the previous session. Western barley futures were unchanged with no western barley futures traded on Thursday. On Wednesday, 10 barley contracts changed hands. |
