ICE Canola Contracts Down, CBOT Soy Losses Bearish
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| February 22, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midsession with declines being encouraged by the sell-off seen in CBOT soybean and soyoil values, market watchers said.
Carryover selling from the declines seen last week helped to initiate some of the early selling interest that surfaced in canola, brokers said. Bearish chart signals were also contributing to the downward price slide in canola. A drop off in domestic crusher demand helped to fuel the price weakness in canola. Speculators, funds, locals and commission houses were all seen on the sell side of the canola market. Some of the selling was also coming from elevator companies, given that some producers were still unloading canola onto the cash market, traders said. The declines in canola were being offset in part by routine exporter pricing of old export business, broklers said. Gains overnight in Malaysian palm oil only provided minimal support for canola. Activity in canola was described as volatile, especially given the ongoing violence in Libya and the rising global crude oil values. The Middle East unrest was also causing speculators to back away from riskier assets, including grains and oilseeds. Spreading was a key feature of the activity seen in canola. There were an estimated 13,630 canola contracts traded at 10:34 CST. Of the contracts traded, 11,766 were spread related. There were no western barley futures traded as of 10:34 CST.
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