ICE Canola Futures Down On Overbought Ideas
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 20, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels as of 9:49 EDT. Some of the early selling was tied to sentiment that the gains seen on Monday were overdone and that a downward correction was needed, market watchers said.
Adding to the weakness in canola were the small losses overnight in the e-CBOT soybean complex and the mixed to lower price trends seen in Malaysian palm oil and European rapeseed futures. The selling interest in canola also came in anticipation of a lower start in CBOT soybean and soyoil futures with the start of the North American day session, brokers said. Reduced demand for canola from Canada’s domestic crushers was viewed as an undermining price influence. Tempering the downside will be the continued delays in harvesting the remaining canola in western Canada and the wet weather outlooks for the US Midwest which will continue to slow the US soybean harvest, traders said. Some underlying support in canola could also come from the slight pull-back in the value of the Canadian dollar early Tuesday and the ability of global crude oil futures to hold at higher levels, brokers said. The lack of country movement and the need of elevator companies to cover an aggressive nearby export program also should help to provide a firm floor for canola values. As of 9:49 am EDT, there were 2,229 canola contracts traded. As of 9:49 am EDT, 3 western barley contracts had been traded. Light commercial demand in the absence of willing sellers, generated some support for barley, brokers said. |
