ICE Canola Contracts Drop As CBOT Soybeans weaken
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 4, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midday with declines coming on the heels of profit-taking and the losses experienced by the CBOT soybean complex, market watchers said.
Sentiment that the gains seen on Thursday were overdone helped to spark some of the selling seen in canola early in the session, brokers said. Adding to the bearish price sentiment in canola were the declines seen in global crude oil futures and the North American equity sector. Weakness in both CBOT soybean and soyoil values also contributed to the downward price slide seen in canola, traders said. The absence of fresh export demand was an undermining price influence. Steady elevator company hedge selling also contributed to the weakness seen in canola. Some underlying support in canola was linked to the weakness in the Canadian dollar, which was stimulating steady demand from domestic processors, brokers said. The pricing of old export business to Japan also provided some minor strength. Weather uncertainty ahead of the weekend also tempered the downside, traders said. Excessive moisture remains a concern across the Canadian Prairies, causing seeding delays in Saskatchewan and flood damage in other areas. With rain in the forecasts across much of western Canada heading into the weekend, market participants were taking a cautious approach waiting to see how conditions are on Monday. The rolling of positions out of the nearby July future into the November contract by index funds continued to be a feature of the activity. There were an estimated 7,422 canola contracts traded at 10:37 CDT. Of the contracts traded 4,700 were spread related. There were no western barley futures traded as of 10:37 CDT. |
