ICE Canola Eases, Poor Demand/CBOT Soybean Losses, Blamed
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at midday. Much of the downward price action was associated with the absence of fresh export demand and the declines posted by CBOT soybean and soyoil futures, market watchers said.
Activity was on the lighter side, but was expected to pick up as the session draws to an end. Brokers noted that position evening ahead of the long holiday weekend in the US was anticipated ahead of the close. The CBOT will be closed on Monday in observance of the Martin Luther King Jr., Day. The losses seen overnight in Malaysian palm oil also helped to stimulate some of the price weakness seen in canola. Losses in canola were also associated with bearish chart signals and declining demand from domestic processors, with crush margins becoming less profitable, brokers said. Indications that commodity funds have gone from a net zero position in canola to a short-position, also had bearish price implications for the commodity, traders said. Weakness in canola also continued to come from the large US and world soybean supply situation and the pending harvest of a record large South American soybean crop. Some underlying support in canola came from the absence of producer deliveries into the cash pipeline and to the scale-down pricing by commercials of old Japanese business, traders said. There were an estimated 3,690 canola contracts traded at 10:46 CST. Of the contracts traded, 1,506 were spread related. There were no western barley futures traded as of 10:46 CST. |
