ICE Canola Drops On CBOT Loss, Weak C$ Supportive
Dwayne Klassen, Resource News International
| January 25, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a mixed range at midday. The two nearby contracts were down in reaction to the losses seen in CBOT soybean values while strength in the remaining months was linked to weakness in the Canadian dollar and steady export demand, market watchers said.
Early strength in canola had stemmed from the advances seen overnight in Malaysian palm oil. The initial strength displayed by CBOT soybean and soyoil values had also stimulated some early buying in canola, brokers said. However, when soybeans and soyoil at the CBOT began to sell-off, the gains in the nearby canola contracts were erased, traders said. Strong weekly farmer deliveries as reported by the Canadian Grain Commission on Friday also were considered an undermining price influence. Bearish chart signals were also helping to keep the nearby canola contracts on the defensive. The large global oilseed supply situation was also seen as an undermining price influence. Support in canola, however, was continuing to come from ideas that canola is oversold and is in need of an upward correction, brokers said. Steady commercial demand, believed to be covering both old and new export business also provided a firm floor for the commodity. There were an estimated 2,390 canola contracts traded at 10:34 CST. Of the contracts traded, 640 were spread related. There were no western barley futures traded as of 10:34 CST. |
