ICE Canola Drops As Commercials Liquidate
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at midday with some of the downward price slide associated with outright liquidation by commercial accounts, market watchers said.
Good volumes were again being posted in canola with a good part of that activity the rolling of positions out of the March future and into the May contract. "There’s a real heavy feel to the canola market," a trader said, adding that there were not a lot of willing buyers. Some of the early selling in canola was linked to hedges from elevator companies, brokers said. Weakness in CBOT soyoil futures was also an undermining price influence. The absence of fresh export demand for canola, the pending record large soybean harvest in South America and large domestic supplies of canola helped to weigh on the commodity, traders said. Tuesday’s canola settlement was viewed as bearish chart-wise, and also contributed to some of the downward price action, brokers said. The buying back of previously sold positions offered some minor support as did the pricing of old export business. Light domestic crusher demand was also evident, and helped to slow the price declines in canola, brokers said. There were an estimated 6,385 canola contracts traded at 10:42 CST. Of the contracts traded, 4,124 were spread related. There was no western barley futures traded as of 10:42 CST |
