ICE Canola Contracts Ease On Commercial Selling
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| January 27, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midsession with the defensive tone associated with increased levels of commercial positioning, market watchers said.
"The rolling of positions by the major index funds is putting downward pressure on the nearby contracts," a broker said. Profit-taking by a variety of market participants and some hedge selling by elevator companies as producers are pricing canola for delivery, also helped to encourage the weakness, traders said. Underlying support in canola came from the overnight advances in Malaysian palm oil and the generally firmer tone in CBOT soybean and soyoil futures, brokers said. Good domestic crusher demand under the market also helped to keep the declines in canola at a minimum, brokers said. Profit-margins for processors in western Canada were said to have improved over the past two business days, they said. Talk that Dubai has indeed purchased Canadian canola, also provided some underlying support for the commodity, brokers said. There were an estimated 6,662 canola contracts traded at 10:55 CST. Of the contracts traded, 2,370 were spread related. There were no western barley futures traded as of 10:55 CST.
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