ICE Canada Review: Canola Eases As Demand Wanes
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 2, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session on the defensive, after trading at mainly higher levels for the bulk of the day. The lack of follow-through buying allowed canola values to ease back to weaker levels with the continued uptrend in the value of the Canadian dollar also linked to the bearish price atmosphere, market watchers said.
Steady domestic crusher and the pricing of old export business by commercial accounts had provided canola with a firm price floor to work with, brokers said. Some light chart-based buying by speculative and local accounts had also been evident and helped to underpin prices. However, as the end of the session neared, the buying dried up and the selling interest picked up, resulting in canola moving mainly lower, brokers said. Some of the selling that came forward was tied to hedging by elevator companies. Overbought market conditions along with profit-taking by a variety of market participants also put canola futures on the defensive, traders said. The continued lack of fresh, confirmed export demand also facilitated the price weakness in canola. Weakness in Malaysian palm oil and European rapeseed futures overnight sparked some of the early selling seen in canola. Spreading was a feature of the activity in canola which helped to augment the volume total. There were an estimated 8,840 canola contracts traded Tuesday, down from the 12,117 contracts that changed hands during the previous session. Of the contracts traded, 5,340 were spread related. Western barley futures were steady to higher Tuesday, with the absence of willing sellers exaggerating the upward price climb, market watchers said. There were 12 western barley contracts traded on Tuesday, compared with none the previous session.
|
