ICE Canola Contracts Ease As CBOT Soybeans Weaken
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| January 6, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midsession, with the declines encouraged by the weakness displayed by CBOT soybean and soyoil futures, market watchers said.
Strength in both the US and Canadian dollar was also viewed as an undermining price influence on canola futures, brokers said. Steady speculative fund liquidation, sparked in part by the downward slide in global crude oil futures, contributed to the bearish price atmosphere in canola, traders said. The arrival of beneficial precipitation in the soybean growing areas of Argentina was helping to weigh on canola futures, brokers said. Slowing the price weakness in canola was steady domestic processor demand and the routine pricing of old export business. Small gains overnight in Malaysian palm oil and European rapeseed values also restricted the price declines in canola. The absence of significant farmer deliveries into the cash pipeline in western Canada also provided some underlying support for canola futures, traders said. There were an estimated 6,211 canola contracts traded at 10:44 CST. Of the contracts traded, 1,960 were spread related. There were no western barley futures traded as of 10:44 CST.
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