ICE Canada Review: Economic Jitters Undermine Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 4, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Friday’s session on the defensive with some of the selling seen during the day associated by continued global economic jitters, market watchers said. Selling was influenced early in the day by news another country in the European Union was having financial difficulties.
Market participants were unwilling to be holding onto positions ahead of the weekend and in view of the deepening world debt crisis situation, brokers said. Sharp declines in CBOT soybean and soyoil values also spilled over to push canola futures down. Some of the weakness in canola also came on ideas that the advances seen on Thursday were overdone and that a downward correction was needed. Steady elevator company hedge selling added to the bearish price atmosphere with the lack of fresh export demand being put on the books also prompting some of the downward price slide, traders said. Support under canola came from ongoing worries about the seeding delays in western Canada due to heavy precipitation and to concerns about the damage to canola crops from the rain. Scale down domestic crusher demand helped to slow the price drop as did the pricing of old export business to Japan. The rolling out of July positions and into the November contract was a feature of the activity and helped to augment the volume total. There were an estimated 18,263 canola contracts traded Friday, up from 13,439 during the previous session. Of the canola traded, spreading accounted for 10,490 contracts. Western barley futures were untraded and unchanged Friday. No barley contracts changed hands during the session. On Thursday, no barley contracts were traded. |
