ICE Canola Contracts Ease On Profit-taking, CBOT Losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 21, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midday. Profit-taking after recent sharp advances stimulated some of the downward price action in canola with weakness in CBOT soybean and soyoil values contributing to the bearish price atmosphere, market watchers said.
Canola futures had traded higher overnight, with some follow-through buying from the advances seen on Wednesday and the gains seen in Malaysian palm oil and European rapeseed futures generating some support, brokers said. Much of the selling that surfaced in canola during the North American day session came from speculative and local accounts, traders said. Sentiment that canola futures were overbought and due for a downward correction further weighed on prices. The uptrend in the value of the Canadian dollar was also viewed as an undermining price influence, brokers said. Elevator company hedge selling was also evident and helped to weigh on canola values. Underlying support in canola came from steady domestic crusher demand and indications fresh export business for Canadian canola was ready to take place at lower price levels, traders said. There were reports that some quantities of Canadian canola had been sold to China earlier this week, they said. The pricing of old export business to Japan was also keeping a firm price floor under canola, brokers said. There were an estimated 11,126 canola contracts traded at 10:42 CDT. There were no western barley futures traded as of 10:42 CDT.
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