ICE Canola Contracts Fall As CBOT Weakens
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| February 24, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at midsession with declines associated with the sell-off seen in the outside oilseed markets, industry watchers said.
CBOT soybean futures were on the defensive with losses also seen overnight in Malaysian palm oil. Steady levels of liquidation orders from a variety of market participants contributed to the downward price slide seen in canola. Some of that selling was inspired by the losses in CBOT soybean and soyoil values as well as to bearish chart signals, traders said. Firmness in the Canadian dollar helped to undermine canola futures with the absence of fresh export demand also adding to the bearish price atmosphere. Elevator company hedge selling also contributed to the weakness in canola, as producers continue to try to move the commodity and avoid any further declines in the cash market, brokers said. Activity in canola was described as extremely volatile with spreading again providing the bulk of the volume total. Some underlying support in canola came from scale down domestic processor demand and from the pricing of old export business to Japan by commercial accounts, brokers said. There were an estimated 12,400 canola contracts traded at 10:51 CST. Of the contracts traded, 9,204 were spread related. There were no western barley futures traded as of 10:51 CST.
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