ICE Canada Review: Canola Eases on Profit-taking
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| December 14, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session on the defensive with profit-taking by a variety of market players and overbought market sentiment associated with the declines, industry watchers said.
The bearish price atmosphere in canola also was encouraged by the downward price slide experienced by CBOT soybean and soyoil futures, traders said. Helping to augment the price declines in canola were the end-of-year liquidation of long positions by speculative fund accounts, brokers said. Elevator company hedge selling was evident and contributed to the price weakness. The upswing in the value of the Canadian dollar was also an undermining price influence. Some early selling in canola had been stimulated by the losses seen overnight in Malaysian palm oil. The rolling of fund positions from the January future and into the March contract was a big feature of the activity seen in canola Tuesday. The losses in canola were tempered by aggressive domestic crusher demand. Talk of some fresh Chinese demand for Canadian canola also was an underpinning price influence. There were an estimated 28,578 canola contracts traded Tuesday, up from the 19,555 contracts that changed hands during the previous session. Of the contracts traded Tuesday, 22,326 were spread related. Western barley futures were unchanged and untraded Tuesday. On Monday, no western barley contracts changed hands.
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