ICE Canola Consolidates, Weak C$ Supportive
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 18, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at midday in activity described as consolidative in nature. Some carryover selling from Monday’s lower close was evident and helped to undermine values, market watchers said.
Additional weakness in canola was being attributed to steady commodity fund liquidation selling sparked by bearish chart signals, traders said. Early losses in CBOT soybean and soyoil futures also contributed to the downside. Elevator company hedge selling was on the lighter side Tuesday, but enough to put some downward pressure on canola futures, brokers said. Reduced domestic processor demand was also seen as an undermining price influence. The favourable weather conditions for the development of the South American soybean crop helped to weigh on canola futures, brokers said. The losses in canola were being tempered by the pull-back in the value of the Canadian dollar as well as by sentiment that canola has suffered quite a setback and was due for an upward correction, traders said. Steady export demand for Canadian canola also helped to provide some underlying support to the commodity. Temporary upturns in CBOT soybeans and soyoil also helped to erase some of the weakness seen in canola. There were an estimated 5,966 canola contracts traded at 10:43 CST. There were 50 western barley futures traded as of 10:43 CST. Some underlying weakness in barley was linked to reduced livestock feed rations amid warmer temperatures, traders said. |
