ICE Canola Futures Consolidate In Narrow Price Range
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| October 28, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly steady levels although price bias was to the downside at 9:31 EDT. Small declines in e-CBOT soybean futures overnight and weaker calls for CBOT soybean values with the start of the North American day session encouraged the downward price activity in canola, market watchers said.
Malaysian palm oil futures also lost some ground overnight and contributed to the price weakness. Profit-taking was an undermining price influence for canola as was some small hedge offers coming forward from elevator companies in western Canada, traders said. Adding to the bearish price sentiment in canola was the recent upswing in the value of the Canadian dollar, brokers said. The Canadian unit was trading at a fractionally weaker level than Thursday’s North American close, but was still above parity with the US dollar. Consolidation in canola was evident as participants took time to consider news that a plan has been created to resolve the Euro-zone debt crisis, brokers said. Position squaring ahead of the weekend was expected to be a feature of the activity. As of 9:31 EDT, there were 295 canola contracts traded. As of 9:31 EDT, no western barley contracts had been traded. |
