ICE Canola Futures Ease As Harvest Progresses
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 1, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to mostly lower price levels at 9:34 EDT. Continued favourable weather, which is allowing producers across western Canada to make significant progress in harvesting canola fields, encouraged the price weakness, market watchers said.
With the pick up in harvest activities, producers were seen increasing their deliveries of canola into the cash pipeline. Declines overnight in e-CBOT soybean futures helped to spark some of the downward price action in canola as did the lower calls for CBOT soybean values with the start of the North American day session. Position evening ahead of Monday’s updated crop production survey from Statistics Canada was expected to be a feature of the activity Friday. Some chart based liquidation orders by speculative accounts was also anticipated during the session and was seen keeping prices on the defensive, brokers said. The absence of fresh export demand was also an undermining price influence. Strength in the Canadian dollar also encouraged some light selling interest. Some minor support was seen stemming from steady domestic crusher demand and the pricing of old export business. Small gains in palm oil overnight and European rapeseed values also helped to slow the price declines in canola, analysts said. As of 9:34 EDT, there were 1,568 canola contracts traded. As of 9:34 EDT, no western barley contracts had been traded. |
