ICE Canola Contracts Ease On Outside Oilseed Declines
| 2 min read
| By Dwayne Klassen, Resource News International |
| March 18, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midday with early selling associated with the strong Canadian dollar and the losses exhibited by the outside oilseed markets, industry sources said.
Early selling in canola was inspired by the declines posted by the e-CBOT soybean complex, Malaysian palm oil and European rapeseed futures overnight, brokers said. Sentiment that the gains seen in canola on Wednesday were overdone and that a downward correction was needed also helped to stimulate some of the early selling interest, traders said. The losses in canola were augmented by the downward movement experienced by CBOT soybean and soyoil futures with the start of the North American day session. The relative strength of the Canadian dollar was also an undermining price influence, with the currency trading within one cent of parity with the US dollar, traders said. A steady trickle of hedge offers from elevator companies was also an undermining price influence for canola. The declines in canola were being tempered by steady domestic processor demand and the routine pricing of old export business by commercial accounts, traders said. The upturn in most CBOT soybean contracts shortly after the opening and the ability of soyoil to move off its lows for the session also helped to ease the losses in canola, traders said. Activity in canola was on the lighter side, with a number of key market participants attending the Canola Council of Canada’s annual convention being held in San Francisco, California Thursday and Friday. Some of the volume seen in canola consisted of spreading by fund accounts, brokers said. There were an estimated 3,431 canola contracts traded at 10:35 CDT. Of the contracts traded, 1,940 consisted of spreads. There were no western barley futures traded as of 10:35 CDT. |
