ICE Canola Contracts Ease, Export Ideas Limit Losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 6, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to slightly easier price levels at midday, but the declines were being limited by talk of fresh export demand coming forward, market watchers said.
The weakness in canola was being facilitated by the taking of profits by a variety of market players and by sentiment the commodity was overbought and in need of a downward correction, traders said. The carnage seen in CBOT wheat futures helped to spark some early selling, particularly as CBOT soybean futures moved lower with the start of the North American day session, brokers said. Losses in European rapeseed futures overnight and steady hedge selling by grain companies also helped to put canola on the defensive. Helping to temper the declines in canola was the upturn seen in CBOT soybean and soyoil futures, traders said. The strong Chinese demand for US soybeans also spilled over into canola, with market participants believing that some demand for Canadian canola from China has also surfaced. No new business, however, could be confirmed. Steady domestic crusher demand and the pricing of old export business to Japan provided some underlying support for canola. The pull-back in the value of the Canadian dollar was also restricting the price declines in canola. Position evening ahead of the weekend was a feature of the activity in canola, brokers said. There were an estimated 5,893 canola contracts traded at 11:10 CDT. There were no western barley futures traded as of 11:10 CDT. |
