ICE Canola Contracts Ease On Overbought Ideas

By Dwayne Klassen, Commodity News Service Canada Inc

Winnipeg – March 1/12 – Canola contracts on the ICE Futures Canada platform were trading at steady to lower price levels at midday Thursday, with the taking of profits by a variety of market participants behind some of the downward slide, market watchers said.

The declines in canola were also associated with sentiment that values were “seriously” overbought and were in need of a downward correction, traders said.

The upswing in the value of the Canadian dollar was an undermining influence on canola, with the strengthening Canadian currency helping to deteriorate domestic crusher demand and contain fresh export business, brokers said.

The losses seen in CBOT soyoil futures were also adding to the bearish sentiment in canola.

Support under the market was coming from a slow down in the amount of farmers delivering canola into the cash pipeline. Some of that decline was associated with weakening cash bids and to the implementation of spring road restrictions, brokers said.

The pricing of old export business to Japan by commercials helped to temper the price declines in canola.

There were an estimated 10,092 canola contracts traded at 10:38 CST. Of the contracts traded, 2,638 were spread related.

There were no western barley, milling wheat, durum or new barley contracts traded as of 10:38 CST.

Prices in Canadian dollars per metric ton at 10:38 CST: