ICE Canola Contracts Ease As Hedges Continue
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly weaker price levels at midday. Some of the downward price action in canola continued to reflect the steady pace of farmer deliveries into the cash pipeline and the resulting hedge offers from the grain companies, market watchers said.
The continued favourable weather conditions for the harvest of the canola crop in western Canada also remained an undermining price influence, brokers said. Weakness in CBOT soyoil futures helped to spark some minor selling as did sentiment that canola values have reached overbought levels and were in need of a downward correction, traders said. Profit-taking ahead of the weekend was also weighing on canola prices. Some of the weakness in canola also reflected ideas that harvested yields were coming in well above expectations in a number of regions across the Canadian prairies, brokers said. Good underlying support under canola was coming from strong domestic processor buying interest and from talk of fresh export demand finally being put on the books, traders said. No confirmation of any fresh Canadian canola business was available. Gains in Malaysian palm oil and European rapeseed futures overnight provided some early strength for canola. Gains in CBOT soybean futures were also an underpinning price influence. A pull-back in the value of the Canadian dollar Friday also generated some underlying support for canola. There were an estimated 15,167 canola contracts traded at 10:35 CDT. There were no western barley futures traded as of 10:35 CDT. |
