ICE Canada Review: Canola Drops On CBOT Losses, Poor Demand
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 29, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session on the defensive with much of the price weakness seen throughout the day attributable to the absence of fresh demand and the declines exhibited by CBOT soybean values, market watchers said.
Some evening up of positions ahead of the weekend was a feature of the activity. Commercials were some of the main sellers of canola during the day with some of that interest triggered by the sell-off seen in the CBOT soybean complex, traders said. Reduced demand from the domestic sector helped to weigh on prices as did the lack of fresh export business being put on the books, brokers said. Commodity funds were also noted sellers of canola during the session, with market players indicating that the selling was part of a plan to increase their short positions in the canola market. The large domestic canola supply and the ample global oilseed stocks situation added to the bearish price sentiment. Canola did manage to find some support throughout the day from short-covering bounces. The pricing of old export business to Japan and the lack of farmer selling were underpinning price influences for canola, traders said. There were an estimated 12,896 canola contracts traded Friday, down from 16,314 during the previous session. Of the contracts traded, 6,950 were spread related. Western barley futures were little changed although the nearby March contract did experience some volume Friday. Light commercial selling was easily absorbed by minor commercial demand, brokers said. An estimated 60 barley contracts changed hands during the session. On Thursday, 35 barley contracts were traded |
