ICE Canola Eases As Demand Fades
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 1, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly easier price levels at midday with strength in the Canadian dollar and the absence of fresh demand behind the downward slide, market watchers said.
"There’s a lot of old canola being shipped out, but not a lot of new business being put on the books," a broker said. Unfriendly chart signals were helping to keep canola on the defensive with commodity funds said to be willing sellers in order to keep canola weak, brokers said. Adding to the bearish sentiment was the large domestic supply of canola and the ample global oilseed supply situation, particularly in view of the large South American soybean crop about to be harvested, traders said. The losses in canola were tempered in part by the lack of farmer deliveries into the cash pipeline. Sentiment that canola was oversold and was due for an upward correction also offered some minor support. Strength in CBOT soybean and soyoil futures were also providing a firm price floor for canola to work with, traders said. There were an estimated 3,118 canola contracts traded at 10:37 CST. Of the contracts traded, 1,154 were spread related. There were no western barley futures traded as of 10:37 CST |
