ICE Canola Contracts Ease On Profit-taking
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at midday with declines associated with the taking of profits and sentiment that canola is overbought and in need of a downward correction, market watchers said.
Locals and speculative accounts were some of the featured sellers. The weakness in canola was also encouraged by the losses displayed by CBOT soybean futures and the continued absence of fresh export demand. Elevator company hedge selling was also an undermining feature, with producers in western Canada stepping up deliveries in view of the recent strength in canola, brokers said. Firmness in the Canadian dollar, as it flirts with parity with the US currency, also added to the bearish atmosphere in canola, traders said. The downside in canola was tempered by scale down pricing of old export business by commercial accounts. Steady domestic crusher demand, amid favourable profit margins, also provided a firm floor for canola, brokers said. Small gains in Malaysian palm oil and European rapeseed futures overnight helped to provide some underlying support. The evening up of positions ahead of the closure of the ICE Canada trading platform Thursday in observance of Remembrance Day was also a feature of the activity. There were an estimated 5,285 canola contracts traded at 10:29 CST. Of the contracts traded, 1,900 were spread related. There were no western barley futures traded as of 10:29 CST. |
