ICE Canola Contracts Ease In Tandem With CBOT Losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 24, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midday with the declines in the outside oilseed markets promoting the downward price slide, industry sources said.
Losses overnight in Malaysian palm oil futures helped to spark some selling of canola early, traders said. The losses in canola were augmented with the declines experienced by CBOT soybean and soyoil values with the start of the North American day session, brokers said. Chart based speculative liquidation orders contributed to the price weakness in canola. The bearish price atmosphere in canola was also linked to the record large supply of soybeans available in Brazil and Argentina. Continued speculation that canola acreage in western Canada will be up this spring further weighed on prices, brokers said. Some elevator company hedge selling was evident on the open, but that interest has since dried up, traders said. Weakness in the Canadian dollar was helping to slow the price drop in canola as was the buying back of previously sold positions by a variety of market participants, traders said. Scale down domestic crusher buying and routine exporter pricing also restricted the price declines in canola. There were an estimated 4,515 canola contracts traded at 10:38 CDT. Of the contracts traded, 1,282 were spread related. There were no western barley futures traded as of 10:38 CDT. |
