ICE Canola Contracts Follow CBOT Sybns Down
| 1 min read
| By Dwayne Klassen, Resource News International |
| March 4, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at midday with much of the downward price slide associated with the declines experienced by CBOT soybean and soyoil futures, market watchers said.
Strength in the Canadian dollar early Thursday contributed to the price weakness in canola as did elevator company hedge selling, traders said. Helping to undermine canola futures were indications that canola area this spring will be up from the previous year’s level. Expectations of a jump in US soybean area was also an undermining price influence. The ongoing harvest of a record sized South American soybean crop also promoted the downward price slide seen in canola, traders said. The losses in canola, however, were tempered by reports of fresh export business with Pakistan, brokers said. Confirmation of the business was not available from exporters, but there were indications that a couple of cargoes of Canadian canola had been sold for an unspecified delivery date. Scale-down demand from domestic processors further slowed the price drop seen in canola, traders said. Routine exporter pricing of Canadian canola business to Japan and Mexico was also an underpinning price influence. Gains overnight in Malaysian palm oil also generated some early underlying support for canola. There were an estimated 4,435 canola contracts traded at 10:33 CST. Of the contracts traded, 1,738 consisted of spreads. There were no western barley futures traded as of 10:33 CST. |
