ICE Canada Review: CBOT Losses Undermine Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 18, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished the session on the defensive with much of the downward price slide associated with the losses seen in the CBOT soybean complex, market watchers said. Position evening ahead of the weekend was a feature of the activity.
Canola had shuffled between higher and lower during the session, but as the losses in both CBOT soybean and soyoil futures expanded near the close, canola turned mainly lower. The lack of fresh export demand for Canadian canola also continued to encourage some selling as did the good crop prospects for the soybean crops in South America, traders said. Weak chart signals also prompted some of the declines in canola. Firmness in the Canadian dollar also helped to weigh on some contracts. The losses in canola were offset in part by light scale-down crusher demand and some covering of routine export business to Japan and Mexico, brokers said. Spreading was a feature of the activity in canola and helped to bolster the volume total. There were an estimated 13,120 canola contracts traded during Friday’s trade, down from 22,972 during the previous session. Of the contracts traded, 7,392 were spread related. Western barley futures were mainly lower in extremely choppy activity. The realigning of positions by commercial accounts provided much of the price action seen in barley, traders said. A drop off in end-user demand helped to prompt some of the downward price action. An estimated 104 barley contract changed hands during the session. On Thursday, 43 barley contracts were traded. Of the contracts traded Friday, 20 were spread related. |
