ICE Canola Futures Ease On Profit-taking, Outside Markets
| 1 min read
| By Dwayne Klassen, Resource News International |
| October 21, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels as of 9:44 EDT. Declines were linked to profit-taking as well as to the weakness in the outside markets, industry watchers said.
Losses in e-CBOT soybeans, Malaysian palm oil and European rapeseed futures overnight helped to spark some of the selling interest seen in canola, brokers said. Weakness in canola also came in anticipation of declines being posted in CBOT soybean and soyoil futures with the start of the North American day session, traders said. Losses in the equity markets overnight, as well as in the energy and metals sector also helped to spark some speculative liquidation orders which took canola down. Poor demand from the domestic market for canola was helping to weigh on prices. Some underlying support in canola was coming from the weakness in the Canadian dollar early Wednesday and ideas that exporters will pick up some additional quantities of Canadian canola to cover recently completely business, traders said. Rain related harvest delays in western Canada were supportive for canola. The reluctance of producers to deliver canola into the cash pipeline also was helping to provide some underlying support, brokers said. As of 9:44 am EDT, there were 2,126 canola contracts traded. As of 9:44 am EDT, no western barley contracts had been traded |
