ICE Canola Contracts Ease on Profit-taking
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| January 25, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels with the general weakness of the world markets stimulating the downward price slide, industry watchers said.
"The losses in crude oil, the equity sector, etc…, have all combined to prompt the unloading of speculative positions in all commodities, including canola," a broker said Adding to the bearish price atmosphere in canola were the declines seen in CBOT soybean and soyoil futures, traders said. Sentiment that canola futures had reached overbought price conditions, also helped to encourage some of the selling that surfaced in the commodity, brokers said. The pricing of new crop contracts by producers was also an undermining price influence on the deferred canola futures. Much of the buying in canola was being conducted on a scale-down basis, with commercials said to be pricing old export business as well as covering nearby domestic processor demand, traders said A pull-back in the value of the Canadian dollar was considered an underpinning price influence for canola. There were an estimated 8,241 canola contracts traded at 10:38 CST. There were no western barley futures traded as of 10:38 CST.
|
