ICE Canada Review: Canola Drops On Weak Technicals
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 12, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session with significant declines with losses linked to the liquidation of positions ahead of the long holiday weekend in both Canada and the US and in view of the unsettled global economic climate, market watchers said.
ICE Futures Canada will be closed Monday for Louis Riel Day in Manitoba. US markets will also be closed for Presidents Day. Canola values moved down early undermined by the losses seen overnight in Malaysian palm oil and European rapeseed futures. Elevator company hedge selling, prompted by producers pricing storage tickets, added to the price declines seen in canola as did chart-based selling by a variety of market players, brokers said. Weakness in CBOT soyoil futures also weighed on canola with a drop off in fresh export demand augmenting the downward price slide. The large Canadian canola supply situation and the record large soybean crop in South America that will be harvested soon, also continued to add to the bearish price sentiment. Commercials were scale down buyers, which helped to slow the price drop. There were an estimated 21,387 canola contracts traded Friday, up from 13,803 during the previous session. Of the contracts traded, 14,668 were spread related. Western barley futures were lower with weakness in CBOT corn futures and the absence of fresh end-user demand stimulating the downward price slide. Commercial selling in the absence of willing buyers helped to amplify the price weakness, brokers said. There were 213 barley contracts that changed hands during the session. On Thursday, 77 barley contracts were traded. |
