ICE Canola Contracts Down On Soyoil Drop, Chart Selling
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at midday with some of the downward price movement associated with the losses in CBOT soyoil as well as the penetration of technical support, market watchers said.
Follow-through selling from Friday’s lower close along with declines in Malaysian palm oil futures overnight helped to contribute to the bearish price atmosphere in canola, traders said. A steady trickle of elevator company hedges added to the price declines in canola with a drop off in domestic crusher and exporter demand also fuelling some of the downward price momentum, brokers said. Speculators were also seen unloading canola positions adding to the price weakness. The ongoing harvest of the record large soybean crop in South America and the huge global oilseed supply in general also were considered undermining price influences. Relative firmness in the Canadian dollar helped to weigh on canola, especially with economists still expecting the currency to move above parity with the US dollar, traders said. Some underlying support in canola came from scale down commercial demand and talk that some fresh export demand could be on the horizon given the downtrend in canola futures, brokers said. There were an estimated 4,097 canola contracts traded at 10:32 CDT. Of the contracts traded, 1,798 consisted of spreads. There were no western barley futures traded as of 10:32 CDT. |
