ICE Canola Contracts Fall On CBOT Drop, Exports Underpin
Dwayne Klassen, Resource News International
| March 11, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels at midday with declines influenced in part by the losses experienced by CBOT soybean and soyoil values, market watchers said.
The declines in canola were, however, being tempered by continued strong demand from the export and domestic sectors, traders said. Some of the early selling in canola was linked to the losses seen overnight in Malaysian palm oil and to profit-taking from the advances seen on Wednesday, brokers said. Elevator company hedge selling and the modest to sharp losses in CBOT soybeans and soyoil helped to undermine canola values. However, at the lows of the day commercial demand for canola surfaced, which in turn limited the price declines. Traders said some of the commercial demand was tied to fresh Canadian canola export business with Pakistan as well as the covering of routine sales to Japan and Mexico. Favourable crush margins for Canada’s domestic processors was also keeping demand for canola strong, brokers said. There were an estimated 5,972 canola contracts traded at 10:51 CST. Of the contracts traded, 3,882 consisted of spreads. There were no western barley futures traded as of 10:51 CST. The absence of open interest in barley was keeping participants out of the market, traders said. |
