ICE Canola Drops as Demand Wanes
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 27, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at midday with declining demand for the commodity behind the downward price slide, market watchers said.
Chart related liquidation orders added to the bearish sentiment in canola with speculators some of the featured sellers, brokers said. Losses overnight in Malaysian palm oil helped to facilitate the downward price declines in canola with the losses in CBOT soybean and soyoil futures at the start of the North American day session augmenting the price weakness, traders said. The large canola supply situation in western Canada combined with the pending large harvest of the South American soybean crop was also an undermining price influence hanging over canola. Domestic demand for canola has also reportedly slowed as crush margins deteriorate, which has helped to weigh on values, brokers said. Much of the buying that is surfacing in canola is being conducted on a scale-down basis, traders said. There were an estimated 4,692 canola contracts traded at 10:28 CST. There were no western barley futures traded as of 10:28 CST. |
