ICE Canola Eases As CBOT Soybean Strength Dissipates
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at a slightly easier price level at midday with much of the downward price momentum linked to the downturn in the CBOT soybean complex and the lack of follow-through buying, market watchers said.
Canola futures had found some early support from the gains seen overnight in e-CBOT soybean futures, Malaysian palm oil and European rapeseed values, brokers said. Friendly chart signals and some light commercial and speculative demand also had provided some strength. Higher calls for CBOT soybean and soyoil futures with the start of the North American day session had also generated some support for canola. However, when the advances in CBOT soybean and soyoil futures began to dissipate and eventually turned into losses, selling in canola also surfaced taking prices down, brokers said. Helping to put canola futures on the defensive were steady farmer deliveries of the commodity into the cash pipeline. The lack of follow-through demand that was evident early also allowed canola futures to drift to the downside, traders said. The strength being displayed by the Canadian dollar was also contributing to the bearish sentiment in canola. There were an estimated 6,119 canola contracts traded at 10:48 CDT. Of the contracts traded 3,300 were spread related. There were no western barley futures traded as of 10:48 CDT. |
