ICE Canola Contracts Ease On Improved Yield Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to lower levels at midday, with declines being encouraged by sentiment that yields for the crop were coming in better than expected, market watchers said.
The improved crop production prospects was linked to the advancing harvest operations that have begun in select areas of western Canada, traders said. There were indications of some "excellent" looking crops, a private forecaster said. The weakness in canola was also associated with the declines posted by Malaysian palm oil futures overnight and the4 losses seen in CBOT soybeans and soyoil with the start of the North American day session, brokers said Elevator company hedge selling was on the lighter side Tuesday morning, but still enough to put some downward pressure on prices, brokers said. The weakness in canola was being slowed in part by steady domestic crusher demand and the pricing of old export business, traders said. The pull-back in the value of the Canadian dollar also helped to slow the price declines in canola. Activity in canola was seen as light and cautious with market participants hesitant to take on large positions ahead of Thursday’s updated supply/demand tables from the USDA. There were an estimated 3,132 canola contracts traded at 10:15 CDT. There were no western barley futures traded as of 10:15 CDT. |
