ICE Canola Contracts Weaken As C$ Firms
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| January 7, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midsession, with the upswing in the value of the Canadian dollar and the losses in the CBOT soybean complex encouraged selling interest, market watchers said.
Activity was described as inactive with some light position evening ahead of the weekend behind some of the price movement, brokers said. The downward price action in CBOT soybeans and soyoil sparked some liquidation of canola contracts by nervous speculative fund accounts, traders said. A drop off in domestic processor demand, as crush margins have declined over the past session or two, also stimulated some of the price weakness seen in canola, brokers said. The absence of fresh export business being put on the books for Canadian canola also undermined values. The downward price action in canola was restricted by good commercial demand at the lows, traders said. Some of that interest was said to be covering some minor domestic requirements as well as old export business. The absence of farmer deliveries into the cash pipeline also provided a firm floor for canola futures, brokers said. Strength in European rapeseed futures and gains in global crude oil were also seen as supportive price influences on canola, traders said. There were an estimated 4,270 canola contracts traded at 10:29 CST. Of the contracts traded, 1,554 were spread related. There were no western barley futures traded as of 10:29 CST.
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