ICE Canola Contracts Establish New Lows
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 11, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midday with the upswing in the value of the Canadian dollar and the resulting down-pull on demand tied to the weakness, market watchers said. New contract lows were established in most canola contracts early in the session.
The absence of fresh demand from the export sector and light, but steady hedge selling by grain companies helped to put canola futures on the defensive, traders said. Chart-based speculative selling contributed to the price weakness in canola. Some of the downward price action seen in canola also reflected the improved soil moisture conditions across the Canadian prairies with weather outlooks calling for warmer temperatures also an undermining price influence. Underlying support in canola came from scale down domestic crusher demand and the buying back of previously sold positions by a variety of market participants, brokers said. The advances seen in CBOT soybean and soyoil futures also provided canola values with a firm floor to work with, traders said. Spreading was a feature of the activity seen in canola. There were an estimated 5,745 canola contracts traded at 10:37 CDT. Of the contracts traded, 2,484 were spread related. There were no western barley futures traded as of 10:37 CDT. |
