ICE Canola Contracts Mixed: Weather Vs Profit-taking
| 1 min read
| By Dwayne Klassen, Resource News International |
| June 11, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a steady to mixed range at midday. The pull back in the value of the Canadian dollar and ongoing weather uncertainty in western Canada continued to generate some support, but oversold price sentiment and profit-taking ahead of the weekend encouraged some of the downward price action, market watchers said.
The weakness in the Canadian currency was said to be stimulating demand from domestic processors as well as encouraging the pricing of old export business to Japan, brokers said. Additional support in canola was coming from the uncertainty surrounding seeded area and the condition of the canola crop from excess moisture across western Canada. Weather outlooks calling for precipitation through most of the weekend across the Canadian prairies was also an underpinning price influence, traders said. Much of the selling in canola was linked to sentiment that values were due for a downward correction after recent advances. Weakness in CBOT soyoil futures helped to undermine canola values as did profit-taking ahead of the weekend. Steady elevator company hedge selling also contributed to the weakness experienced by canola, traders said. The rolling of positions out of the nearby July future into the November contract by index funds continued to be a feature of the activity and was a factor in the volume total. There were an estimated 9,748 canola contracts traded at 10:10 CDT. Of the contracts traded 6,262 were spread related. There were no western barley futures traded as of 10:10 CDT.
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