ICE Canada Review: Canola Drops On Local/Spec Selling
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Wednesday’s session on the defensive with much of the downward price slide associated with the taking of profits by locals and speculative accounts, market watchers said.
Some evening up of positions ahead of Thursday’s closure of the ICE Canada trading platform in observance of Canada’s Remembrance Day was a feature of the activity. Canola contracts also lost ground in response to the pick up in the level of hedges from elevator grain companies in western Canada, brokers said. They noted the hedging was in anticipation of producers taking advantage of recent price hikes to deliver canola into the cash pipeline. Weakness in CBOT soybean futures spilled over to weigh on canola with the lack of fresh export business being put on the books adding to the bearish price atmosphere, traders said. Firmness in the Canadian dollar was also an undermining price influence throughout the day. Some underlying support came from the advances seen overnight in Malaysian palm oil and European rapeseed futures. Gains in CBOT soyoil Wednesday also offered some underlying support. Steady domestic crusher demand was an underpinning price influence. Scale down pricing of old export business by commercial accounts also helped to temper the price weakness seen in canola. There were an estimated 10,761 canola contracts traded Wednesday, down from the 21,522 contracts that changed hands during the previous session. Of the contracts traded, 4,362 were spread related. Western barley futures were unchanged and untraded Wednesday. No western barley contracts traded on Tuesday. |
