ICE Canola Drops As Demand Wanes, Soyoil Weakens
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at midday with some of the downward price momentum coming on the heels of waning demand and the weakness in CBOT soyoil, market watchers said.
Sentiment that Thursday’s gains were overdone and that canola values were in need of a downward correction also weighed on prices, brokers said. The canola stocks in all positions estimate from Statistics Canada early Friday morning was within pre-report expectations and was largely ignored by market participants, brokers said. Traders said the demand that had surfaced on Thursday was absent from the market and helped canola to move lower. Some light elevator company hedge selling was also evident early in the session and helped to undermine canola futures, traders said. The large global oilseed supply situation also continued to exert some downward pressure on canola. The losses in canola were tempered by scale-down commercial pricing of old export business and some light domestic crusher needs, brokers said. Strength in the Canadian dollar early Thursday had also stimulated some selling in canola, but as the Canadian unit retreated in value, the losses in canola were partly tempered. There were an estimated 4,237 canola contracts traded at 10:43 CST. Of the contracts traded, 1,556 were spread related. There was no western barley futures traded as of 10:43 CST. |
