ICE Canola Contracts Mixed, Soybean Gains Supportive
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 12, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a narrowly mixed range with prices shuffling from gains to losses as participants try to define a set trend for values, market watchers said.
Canola values had eased overnight reacting to declines in Malaysian palm oil futures and to the absence of fresh export demand for Canadian canola, brokers said. Adding to the bearish price sentiment were the improved crop prospects for canola in western Canada, with estimates for the crop rising to around the 11.0 million metric ton level from around 9.0 million. The record large US soybean production estimate from the USDA early Thursday also was an undermining price influence with the declines in CBOT soyoil also adding to the price weakness, brokers said. Elevator company hedge offers were also evident and contributed to the declines seen in canola. An upward rebound in the value of the Canadian dollar Thursday also was a restrictive price feature. Support in canola was stemming from the firm price tone exhibited by CBOT soybean values as well as by the pricing of old export business by commercials, traders said. Some domestic processor demand was also evident and helped to underpin canola futures. There were an estimated 5,477 canola contracts traded at 10:46 CDT. There were no western barley futures traded as of 10:46 CDT. |
