ICE Canola Declines Following CBOT Soybeans Down
| 1 min read
| By Dwayne Klassen, Resource News International |
| December 30, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at a weaker price level at midday with much of the downward price momentum a reflection of the losses experienced by CBOT soybean and soyoil values, market watchers said.
Most of the activity so far has been dominated by commercials with market participants sidelined in view of the ongoing Christmas and New Year’s holidays. ICE Futures Canada will see an abbreviated session on Thursday and will be closed on Friday, January 1. Some of the bearish sentiment in canola was also being linked to the good growing conditions for the soybean crops in South America, traders said. The lack of confirmed, fresh export business was also seen as an undermining price influence for canola. Underlying support in canola was coming from the pull-back in the value of the Canadian dollar and from the absence of farmer deliveries into the cash pipeline, brokers said. Friendly chart signals also provided some minor support for canola. There were an estimated 3,242 canola contracts traded at 10:31 CDT. Of the contracts traded 698 were spread related. There were 20 western barley futures traded as of 10:31 CDT. Of the contracts traded, all were spread related. The rolling out of the January contract and into the March future accounted for the bulk of the price activity, brokers said. |
