ICE Canola Contracts Down As Funds Liquidate

Some of that selling was associated with overnight news that China will raise banks’ reserve requirement ratio by 0.50 percentage point beginning on November 29, the fifth hike this year, to strengthen liquidity management and control credit, analysts said.

Additional weakness in canola was spurred on by the downward price action experienced by both CBOT soybean and soyoil values with the start of the North American day session, brokers said.

A drop off in demand from the export sector was also viewed as an undermining price influence, traders said.

Some underlying support in canola came from good domestic processor demand under the market. However, brokers noted that the buying interest from processors was not aggressive in nature.

The absence of farmer deliveries into the cash pipeline in western Canada also provided some underlying support for canola values, traders said.

Position evening ahead of the weekend and next week’s closure of the US markets for the US Thanksgiving holiday was a feature of the activity in canola.

Spreading helped to augment the volume total seen in canola.

There were an estimated 7,202 canola contracts traded at 10:29 CST. Of the contracts traded 3,998 were spread related.

There were no western barley futures traded as of 10:29 CST.