ICE Canada Review: Charts, CBOT Soy Losses Undermine Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session on the defensive with follow-through liquidation from Friday’s weak technical close and the losses in CBOT soyoil futures accounting for the downward price slide, market watchers said.
The penetration of technical support levels on Friday prompted much of the early selling that surfaced in canola. Canola contracts also moved down undermined by the losses seen overnight in Malaysian palm oil, traders said. A steady trickle of elevator company hedges added to the price weakness in canola with a drop off in domestic crusher and exporter demand also stimulating some of the downward price momentum, brokers said. The ongoing harvest of a record large soybean crop in South America added to the price weakness as did the large global oilseed supply. The potential for canola area in western Canada to be up sharply this spring, also prompted some selling. Some underlying support in canola came from scale-down commercial demand and talk that some fresh export business could be on the horizon, given the recent downtrend in canola futures, traders said. The advances posted in CBOT soybean futures also helped to restrict the price weakness in canola. There were an estimated 9,606 canola contracts traded Monday, up from 7,168 during the previous session. Of the contracts traded, 3,990 contracts were spread related. Western barley futures were little changed in the absence of willing market players and fresh fundamental inputs, brokers said. There were no barley contracts that changed hands during the session. On Friday, no barley contracts were traded. |
