ICE Canola Eases On Overbought Ideas, CBOT Losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 17, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at midday with some of the downward price slide linked to ideas that values were overbought and in need of a downward correction, market watchers said.
The declines experienced by CBOT soybean and soyoil futures also encouraged the losses seen by canola, brokers said. A lot of the price action in canola consisted of participants rolling out of the nearby March contract and into the May future, traders said. Some early weakness in canola came from light hedge offers and a drop off in demand from the export sector. Uncertainty regarding the global economy also sparked some liquidation by speculative accounts, brokers said. Adding to the bearish price sentiment in canola was the large global oilseed supply situation, especially with a record large soybean crop expected to be harvested in Brazil and Argentina, traders said. Gains overnight in Malaysian palm oil helped to slow the price declines in canola. There were an estimated 11,681 canola contracts traded at 10:25 CST. Of the contracts traded, 10,226 were spread related. There were 16 western barley futures traded as of 10:25 CST. Much of the action occurred in the nearby March future with trade a light two way affair between commercials, traders said.
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