ICE Canola Futures Drop On End of Month Positioning
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 30, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at 9:39 EDT, with the declines linked to end-of-month positioning as well as to the declines seen in some of the outside oilseed markets, industry watchers said.
Losses were posted in e-CBOT soybeans overnight as well as in European rapeseed futures. The equity and energy markets also lost some ground overnight Profit-taking on the gains seen during Thursday`s session were also anticipated, helping to put canola on the defensive, brokers said. Some of the selling seen in canola also came in anticipation of the steady to lower calls for CBOT soybean and soyoil futures with the start of the North American day session, traders said. Activity in canola was likely to be on the choppy side as market participants await news from the meeting between Canadian and Chinese officials over China`s pending implementation of phytosanitary certificates on all imported canola. This blackleg prevention restriction goes into effect November 15. Canadian officials were hoping China would grant a six month extension before implementing the restriction. No word was available on when the meeting will break up and if any information will be made available on the outcome. Some underlying support in canola was seen stemming from small gains posted in Malaysian palm oil futures overnight and from a softer Canadian dollar in early Friday morning activity. Rain-related harvest delays in western Canada were also seen as an underpinning price influence, with a good percentage of canola still sitting out on fields, brokers said. As of 9:39 am EDT, there were 2,156 canola contracts traded. As of 9:39 am EDT, no western barley contracts had been traded. |
