ICE Canola Contracts Weaken on CBOT Losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 8, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels with the declines in the CBOT soybean complex influencing some of the price weakness, market watchers said.
Declines overnight in Malaysian palm oil and the large global oilseed supply situation also continued to undermine canola futures, brokers said. Light, but steady hedge selling by grain companies added to the bearish price atmosphere in canola. The expectations of record large canola plantings this spring in western Canada also continued to spark some light selling, traders said. The downward price momentum in canola was limited, however, by the return of domestic processor demand, brokers said. Good commercial demand, believed to be pricing old export business to Japan, also provided a firm floor for canola to work with, traders said. Activity in canola was on the lighter side with some evening up of positions ahead of Friday’s latest round of supply/demand reports from the USDA a feature of the trade. A good portion of the volume total in canola involved market participants readjusting canola positions via spreads, brokers said. There were an estimated 3,679 canola contracts traded at 10:45 CDT. Of the contracts traded, 2,458 were spread related. There were no western barley futures traded as of 10:45 CDT. |
