ICE Canola Contracts Mixed, CBOT Losses Spur Selling
Dwayne Klassen, Commodity News Service Canada
| November 29, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a mixed range at midsession with the nearby contracts on the defensive and the deferred months able to post small advances. The losses in CBOT soybeans encouraged some of the selling interest while weakness in the Canadian dollar managed to hold a firm price floor under deferred contracts, market watchers said.
The absence of fresh export demand for canola also contributed to the bearish price atmosphere in the nearby months. Elevator company hedge selling was also evident and added to the weakness in the commodity, brokers said. Activity was on the choppy side as market participants were waiting for the large index fund accounts to start rolling positions out of the nearby January contract and into the March future, traders said. Participants were also evening up positions ahead of Friday’s updated crop production survey results from Statistics Canada. Some market participants were expecting that StatsCan’s report will show larger than anticipated canola production totals. The deferred months were being underpinned by the weak Canadian dollar and the pricing of export and domestic crusher demand. The buying back of previously sold positions was also an underpinning price influence. Gains in Malaysian palm oil and European rapeseed futures also provided some early support to canola contracts. There were an estimated 5,804 canola contracts traded at 10:27 CST. Of the contracts traded 2,624 were spread related. There were no western barley futures traded as of 10:27 CST.
|
