ICE Canola Futures Decline On Profit-taking, Lower CBOT
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 22, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels as of 9:45 EDT. Some of the downward price action in canola was linked to profit-taking after the gains seen on Wednesday as well as to the declines seen in the e-CBOT soybean complex overnight, market watchers said.
The weakness in canola was also attributed to selling in anticipation of the lower opening for CBOT soybean and soyoil futures with the start of the North American day session, brokers said. Canola futures were also being undermined by the weak tone in the outside markets, including energy and metals, traders said. The reduced demand for canola from the domestic processor sector was also considered bearish for values. Underlying support in canola, however, was stemming from the wet weather outlooks for western Canada and the continued delays in harvesting the last of the canola crop. Slow producer offerings were underpinning price influence with pricing of old export business on any dips also anticipated, brokers said. Small gains in Malaysian palm oil futures overnight were also seen as an underpinning price influence for canola. Canola futures were also testing some important technical resistance levels, and if the commodity is able to penetrate those lines, some gains are anticipated. However, if the resistance holds, canola prices could see some additional selling surface. As of 9:45 am EDT, there were 1,825 canola contracts traded. As of 9:45 am EDT, 50 western barley contracts had been traded. Most of the activity was concentrated in the nearby November future where light commercial offers accounted for the weakness, brokers said. |
