ICE Canola Futures Ease On Chart Based Liquidation
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| February 16, 2011 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 9:26 EST. Liquidation based off of bearish chart signals weighed on canola futures as did the declines in the outside oilseed markets, industry watchers said.
Losses were posted in e-CBOT soybean values, as well as in Malaysian palm oil and European rapeseed futures overnight, brokers said. The lower calls for CBOT soybean and soyoil futures with the start of the North American day session also contributed to the bearish price atmosphere. Locals, commercials and speculative accounts were some of the featured sellers so far, traders said. Adding to the downward price slide in canola was panic selling by producers who have canola sitting on farm. That selling to the commercial grain system has in turn triggered increased hedging, brokers said. Sell-stops under the market have augmented the price weakness in canola. The downside in canola was being slowed by ideas that values have now begun to reach oversold price levels and were in need of an upward correction, traders said. Steady domestic crusher demand and the pricing of old export business were also seen as underpinning price influences. Activity in canola was expected to be choppy ahead of the ICE Futures Canada closure on Monday due to a holiday. Monday, February 21, is Louis Riel Day in Manitoba, Family Day in Saskatchewan and Alberta and Presidents’ Day in the US. As of 9:26 EST, there were 3,140 canola contracts traded. As of 9:26 EST, no western barley contracts had been traded.
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