ICE Canola Contracts Down On Strong C$, Harvest
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at midday in good volumes of activity. The continued uptrend in the value of the Canadian dollar and the favourable weather conditions across western Canada for harvest activities sparked the selling that took canola futures down, market watchers said.
Adding to the bearish price sentiment in canola was the steady pace of canola deliveries into the cash pipeline by producers, brokers said. Some chart based liquidation selling was also evident, which contributed to the price declines seen by canola. The lack of fresh export business being put on the books was also an undermining price influence. The midmorning downturn in CBOT soybean futures also encouraged some selling in canola. Some underlying support in canola came from the advances seen in CBOT soyoil values and from steady domestic crusher demand, traders said. The pricing of old export business also helped to slow the price weakness in canola. A good portion of the volume seen in canola consisted of position rolling out of the November contract and into the January future, brokers said. There were an estimated 13,891 canola contracts traded at 10:53 CDT. Of the contracts traded, 5,602 were spread related. There were no western barley futures traded as of 10:53 CDT. |
