ICE Canola Contracts Down as Demand Erodes
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 27, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels at midday with the lack of follow-through buying and the weakness in CBOT soyoil allowing the erosion of early gains, market watchers said.
Canola had started on a firmer footing with reports of fresh export business being put on the books propping up prices, brokers said. There were unconfirmed reports that an undisclosed amount of Canadian canola was sold to Bangladesh. Additional strength in canola had come from the pricing of old export business to Japan by commercials, traders said. The buying back of previously sold positions had also influenced some of the upward price action seen in canola. The early advances in CBOT soybeans and soyoil had also generated some support for canola. However, when the buying dried up in canola, values began to ease downwards. Commodity funds who had been early buyers began to turn into sellers, brokers said. Hedging by elevator companies had also been non-existent in the early going, but they also picked up as the session progressed, adding to the downward price momentum in canola, traders said. The arrival of much needed moisture in western Canada was also viewed as an undermining price influence as were ideas that area to canola in western Canada will easily topple the record 16.9 million acres in the April 26 Statistics Canada planting survey, brokers said. There were an estimated 10,034 canola contracts traded at 10:36 CDT. There were no western barley futures traded as of 10:36 CDT |
