ICE Canola Futures Ease On Outside Oilseed Losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 27, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 9:24 EDT. Much of the downward price slide was associated with the declines experienced by the outside oilseed markets overnight, market watchers said.
Losses were seen in e-CBOT soybean activity and Malaysian palm oil futures. Weaker calls for CBOT soybeans and soyoil with the start of the North American day session also influenced some of the price declines seen in canola, brokers said. Adding to the bearish price tone in canola will be sentiment that values are due for a downward correction after experiencing some pretty significant advances over the past week or so, traders said. The lack of confirmed fresh export business also continues to be an undermining price influence. Some of the selling in canola could also come from ideas that production of the crop may have been larger than anticipated based on early yield results, traders said. The downside in canola was expected to be limited by steady levels of domestic crusher demand and by the pricing of old export business by commercial accounts. A drop off in the level of farmer deliveries into the cash pipeline was also seen keeping a firm floor under canola. Advances in European rapeseed futures overnight may also generate some minor support for canola. The pull-back in the value of the Canadian dollar also may provide some underlying support for canola, brokers said. As of 9:24 EDT, there were 2,203 canola contracts traded. As of 9:24 EDT, no western barley contracts had been traded.
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