ICE Canada Review: Yield Ideas Undermine Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session on the defensive with the advancing harvest in select areas of western Canada and talk of better than expected yield production behind the downward price slide, market watchers said.
The bearish price tone in canola was also encouraged by the losses seen in Malaysian palm oil futures overnight and the declines experienced by CBOT soybean and soyoil futures during the North American day session, brokers said. Activity was cautious with few market participants wanting to establish large positions ahead of Thursday’s latest round of supply/demand reports from the USDA. A drop off in domestic and exporter demand was an undermining price influence on canola with some chart-based liquidation orders adding to the bearish price sentiment in canola, traders said. Hedge selling by grain companies was on the lighter side Tuesday, but the levels of selling coming in were still enough to undermine canola futures. Light pricing of old export business helped to slow the price drop. The pull-back in the value of the Canadian dollar Tuesday also provided some minor underlying support for canola, brokers said. There were an estimated 10,347 canola contracts traded Tuesday, up from the 5,132 contracts that changed hands during the previous session. Western barley futures were bid higher but no contracts changed hands on Tuesday. On Monday, no barley contracts were traded. |
