ICE Canada Review: Canola weakens on profit-taking
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 6, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session on the defensive with values pushed lower by the taking of profits by a variety of market participants and sentiment that values were overbought and in need of a downward correction, industry watchers said.
Canola futures moved to both sides of the plus/minus line during the session before moving lower at the close. Pre-weekend position evening was a feature of the activity. An improvement in the growing conditions for canola in western Canada contributed to the selling interest seen in the market. Adding to the bearish tone were steady hedge offers from elevator companies, as the commercial sector anticipated increased deliveries by producers. The harvest of canola was underway in select regions of the Canadian prairies, brokers said. The limit down losses seen in US wheat futures Friday were also an undermining price influence on canola, analysts said. Support in canola throughout the day came from the pull-back in the value of the Canadian dollar and from steady domestic processor demand. Strength in canola also came from the upswing seen in US soyoil futures and from sentiment that with China being an aggressive buyer of US soybeans, that some Canadian canola sales were also being made, brokers said. No confirmation of any fresh business was available. The pricing of old export business also provided canola with a firm price floor. Spreading was a minor feature of the activity seen in canola but still helped to augment the volume total. There were an estimated 9,877 canola contracts traded Friday, down from the 13,847 contracts that changed hands during the previous session. Western barley futures were unchanged with no contracts changing hands on Friday. On Thursday, no barley contracts were traded. |
